Finishing med school and starting work is exciting… until tax time rolls around. Suddenly you’re staring at payslips, receipts, and wondering: what can I actually claim?
Whether you’re juggling public hospital shifts, working as a locum or getting income from a university or publisher, your tax position is probably pretty different from someone with a single employer.
The good news? Doctors get access to a range of deductions that can make a huge difference to your take-home pay. Here’s a clear guide to help you avoid common mistakes and keep more of what you earn.
Understanding your tax obligations as a doctor
In your intern and early training years, tax is pretty straightforward. You’ll usually be on a hospital payroll, which means tax is withheld before your pay hits your bank account. Your main jobs are:
- Lodging a tax return each year.
- Knowing what deductions you can (and can’t) claim.
- Considering salary packaging if your hospital offers it.
Things only get trickier when you branch into locum shifts or private work. If you go down that road, you’ll need to set aside money for tax yourself, otherwise you risk a nasty surprise at tax time.
For now, focus on getting the basics right.
Understanding your tax obligations as a doctor
Here are some common tax deductions that junior doctors can claim.
Work-related expenses
This might include anything you might need to do your job.
- Uniforms: including scrubs, lab coats and buying clothing items embroidered or printed with your hospital or practice logo (as long as it’s registered with AusIndustry).
- Laundry: You can claim the cost of laundering these items but not everyday clothes like shirts, pants and shirts.
- Tools & equipment: stethoscopes, medical tools, laptops. Over $300? You claim the cost gradually.
- CPD: courses, seminars, workshops that directly related to maintaining or improving your professional skills.
- Medical indemnity insurance.
Travel between work sites/hospitals
You can claim the cost of travelling between work sites (like if you travel between a public hospital and private practice). You can claim car expenses, parking and public transport.
To claim car travel expenses, choose between:
- Claiming a ‘cents per kilometre’ rate (for up to 5,000 business kilometres per vehicle); or:
- A logbook percentage where you keep a 12-week logbook to serve as a reference. This can be applied for five years.
You can’t claim the cost of travelling from home to your first work site.
Home office deductions
If you do telehealth appointments or admin work from home, you may be able to claim a portion of your home office expenses. This might include:
- Internet
- Phone
- Electricity
- Office equipment depreciation (computer, desk, chair)
Travel/work-related expenses
Claiming the cost of travelling to conferences, seminars or workshops is a common tax deduction for doctors. If you need to attend a conference that is directly related to your medical profession, the cost of the travel, including flights, accommodation and meals can be claimed.
Keep in mind that if you tack on a personal holiday at the end, you can only claim the work part. Also, if you’re reimbursed for your accommodation or meals through salary packaging, you can’t claim for a tax deduction as well.
Other deductions
You can claim plenty of other deductions that aren’t medicine-specific. These include:
- Charity donations
- Extra superannuation payments
- Income protection insurance
Common tax pitfalls to avoid
Poor records: No receipts = no claim. Snap photos, keep them in a folder, or use an app. Future-you will thank you.
Under-claiming: Many junior doctors miss out because they’re overly cautious. Don’t leave money on the table.
Bad timing: Buying gear just after June 30? You’ve missed this year’s benefit. Check with your advisor about what to prepay before EOFY.
How DPM can help you stay ahead
Tax isn’t just once a year, it’s year-round planning. With the right strategy, you can:
- Reduce your tax bill.
- Claim everything you’re entitled to.
- Build good money habits from the start.
At DPM, our advisors specialise in doctors. We’ll help you keep on top of receipts, explain what’s worth claiming, and give you a clear plan so tax time isn’t stressful.
Take control of your tax today. Chat to a DPM tax advisor and make sure you’re set up to save this year (and every year after).
This article contains general advice only and may not be suitable for your circumstances. Make sure you seek financial advice appropriate to your individual circumstances before making decisions.
