As a medical professional, there are various work-related expenses that you can claim as tax deductions, which can help lower your taxable income and increase your refund. Getting to know what you’re entitled to claim allows you to make the most of these deductions. Here are 10 important ones to keep in mind.

1. Claim Work-Related Education and Training Expenses

Things you can claim:

  • Tuition fees for courses
  • Seminar or conference fees
  • Textbooks and study materials
  • Online courses

Ongoing education is essential for medical professionals. You can claim expenses for courses, seminars, conferences, textbooks, and online training that are directly related to your current role. For example, attending a medical conference or completing a relevant certification can qualify for a deduction.

2. Claim Uniforms and Protective Clothing

Things you can claim:

  • Medical scrubs
  • Lab coats
  • Protective gloves or safety glasses
  • Laundry costs for uniforms

If you’re required to wear specific uniforms or protective clothing for work, you can claim the costs of purchasing, maintaining, and cleaning these items. Common deductions include scrubs, lab coats, safety glasses, and laundry costs for work clothes. Just make sure these items are required for your role.

3. Deduct Home Office Expenses

Things you can claim:

  • Electricity and gas bills
  • Internet and phone bills
  • Office equipment (e.g., desks, computers)
  • Office supplies (e.g., stationery)

If you work from home for administrative tasks or telehealth consultations, you can claim part of your household expenses, including electricity, internet, and phone costs. You can use the actual expenses method, which calculates the exact portion related to work, or a flat rate method, which simplifies the process.

4. Claim Professional Membership Fees

Things you can claim:

  • Membership fees to professional bodies (e.g., AMA, NMBA)
  • Subscriptions to industry journals or resources

Memberships to industry associations, like the AMA or NMBA, and subscriptions to medical journals that support your role are tax-deductible. As long as these memberships help with your professional development, you can claim the full cost.

5. Claim Work-Related Travel Expenses

Things you can claim:

  • Fuel and maintenance costs
  • Car insurance and registration
  • Parking fees
  • Tolls

If you need to travel between hospitals, clinics, or patient homes, you can claim expenses for fuel, maintenance, insurance, parking, and tolls. However, trips from home to your usual workplace aren’t deductible. Be sure to keep a logbook to track work-related travel.

6. Medical Equipment and Tools

Things you can claim:

  • Stethoscopes
  • Blood pressure monitors
  • Surgical instruments
  • Medical reference books

Purchasing your own tools or medical equipment for work, like stethoscopes, surgical instruments, or reference books, is fully deductible. These are essential items for your role and can be claimed on your tax return.

7. Income Protection Insurance

If you pay for income protection insurance to cover yourself in case of illness or injury, those premiums are tax-deductible. This can give you peace of mind while also reducing your taxable income.

For example, if you pay $1,500 a year for income protection insurance, you can claim this full amount as a deduction, helping you save on taxes while ensuring financial security in case you’re unable to work. Always retain your insurance premium statements as proof for your tax records.

8. Depreciation on Medical Equipment​

Things you can claim:

  • Medical-grade computers or laptops
  • Diagnostic equipment
  • Large office equipment

If you’ve invested in more expensive equipment, such as a medical-grade laptop or diagnostic tools, you can claim depreciation over the asset’s useful life. This allows you to spread the tax benefit over several years.

9. Donation

The key things to remember include:

  • The donation must be $2 or more to be tax-deductible.
  • Keep receipts as evidence to support your claim.
  • You can claim donations of money or gifts, such as property, but they must be made to a registered DGR.

Donations made to registered charities or organisations can also be a valuable tax deduction for medical professionals. If you donate to a charity that has Deductible Gift Recipient (DGR) status, you can claim the amount as a tax deduction in your return. The donation must be voluntary, and you must not receive anything in return for it, such as raffle tickets or event entry.

10. Remember These Tax Deduction Ground Rules

Here are the key guidelines for medical professionals when claiming tax deductions.

  • Report employer allowances
  • Claim personal expenses only
  • Keep documentation
  • Ensure work-related relevance

When claiming tax deductions as a medical professional, it’s essential to follow these guidelines to make sure your claims are accurate and compliant. The first thing to include is any allowances your employer provides for work-related expenses. You can only claim expenses that you’ve personally covered, so if your employer has reimbursed you, those costs aren’t eligible. 

It’s also important to keep accurate documentation, such as receipts and invoices, to validate your claims, as you may not be able to claim without proper proof. Additionally, ensure that any deductions are directly tied to your medical work or income-earning activities, as personal or unrelated costs are not deductible.

Get Expert Help

Figuring tax deductions can be tricky, and having a qualified tax accountant ensures you don’t miss out on any eligible claims. An expert can help you optimise your return, stay compliant, and take advantage of deductions you may not be aware of. Book a time for a free consultation over Zoom or a face-to-face meeting at our office to get your tax return out of your way!