A Comprehensive Guide to Maximising Your Tax Savings
Medical practitioners in Australia, recognized as some of the top earners, are subject to significant tax rates. But did you know that many are unaware of the extensive deductions they are entitled to? This leads to missed opportunities to reduce their tax liability.
At Acuity Financial Services, we specialize in assisting doctors and healthcare professionals in navigating the complex world of taxation. Here’s a detailed guide to the deductions you should be leveraging:
1. Are You Aware of Travel and Vehicle Expenses Deductions?
Do you travel between various workplaces, such as consultation rooms, hospitals, or different practices? These trips are deductible, including costs for parking, tolls, and even public transport. How can you calculate these deductions? There are two methods:
- Cents per Kilometre: Multiply the total work-related kilometres driven by the ATO’s set rate, up to 5,000 kilometres per vehicle annually.
- Logbook Method: Determine the business use percentage of your vehicle by maintaining a logbook over twelve weeks.
Note: Commuting between home and work is generally not deductible.
2. Can You Deduct Professional Memberships and Publications?
Are you a member of medical associations like the Australian Medical Association (AMA)? Membership fees and costs for renewing practicing certificates are tax-deductible. Want to stay current in your field? Subscriptions to medical journals and specialty publications are also deductible.
3. What Insurance Coverage Can You Claim?
Do you hold work-related insurance policies such as professional indemnity insurance? These may be claimed as deductions. However, life insurance, trauma insurance, and critical care insurance are typically not deductible. Consult your accountant for specific guidance.
4. How Can You Deduct Mobile Phone Usage?
Do you use your personal mobile for work calls? The ATO allows fixed amounts for incidental use under $50 or a percentage-based deduction calculated over four weeks.
5. What Equipment and Supplies Are Deductible?
Do you provide your own work-related equipment, such as stethoscopes or briefcases? These costs can be claimed as deductions.
6. Can You Deduct Interest on Business Loans?
Have you taken out loans for business purposes? Interest incurred on these loans may be deductible. Consult a qualified tax accountant to assess your eligibility.
Partner with Acuity Financial Services for Tailored Tax Solutions
To maximize your tax deductions as a medical professional, proper record-keeping and receipt retention are vital. At Acuity Financial Services, our expertise ensures that you claim all eligible deductions.
Contact us today for personalized advice and assistance with your next tax return. Our team is committed to helping you navigate the tax landscape with confidence and ease.
