Podcast | Transitioning From Registrar To Consultant

After completing tax returns for medical professionals for more than 50 years, our tax team has helped medical professionals like yourself with various questions to help you stay or become financially healthy, with your finances serving your goals and objectives.
In regards to transitioning from employee to sole trader, there are a few key considerations you should be aware of:

For tax:
o Make sure you don’t have your tax withheld, or having to save it yourself.
o Any tax holiday and or honeymoon,
o Planning for payments and PAYG instalments with the help of an accountant
o Registering for GST and lodging BAS, use of bookkeeping software like Xero

In terms of Super, you should consider:
o Not having it paid for you, and having the option to make personal contributions
o Annual limits and potential carry forward unused cap space
o The tax benefit assuming a top marginal tax rate, div293 and excess contributions tax
o Seeking advice from a financial adviser with respect to how much/when and other super strategies

In regards to insurances and leave:
o No leave being accrued on private work, saving for this as well so you can take a well deserved break when needed
o Importance of having insurances like income protection in place to ensure you continue receiving an income if you are injured long term.
o What is life insurance? What is TPD? Why is it not deductible?
o Own occupation definition and seek advice from an insurance expert like those at DPM.

Considerations for methods of work and payment includes:
• Private assisting, asking yourself:
o How it works
o Who to invoice and how
o Using a billing service
• Service Fees, considering:
o What is a service fee?
o Who is it paid to
o Deducting the expense and claiming GST

Lastly, you should also consider groups and structures by:
• Starting your own vs joining an existing group of surgeons
o Typical structure (benefits of a Trust versus risks of partnership)
o Hiring staff and renting rooms
o Software (practice for billings like cliniko or genie and bookkeeping for payroll and tax)

Choosing a specialist firm to help you with your medical finances is an important decision.
The team at dpm, which includes tax and accounting, wealth, insurance and lending services, can find out how they can work with you to create a tailored plan for your specific needs.