Since Australian medical professionals are categorized under higher income brackets, higher taxes are collected in turn. However, taxable income can be lowered, in effect, lowering tax liability. This is due to tax deductions, either through standard deductions or itemized deductions. For medical professionals who are not familiar with deductions, hiring a professional accountant to help manage their finances may be ideal. Some examples of deductions for medical practitioners are:
Medical professionals distinguish themselves in the workplace using identifiable uniforms and protect themselves from occupational hazards using protective gear. Expenses incurred for these distinctive or protective clothing, such as laboratory gowns and surgical scrubs, are deductions.
A regular part of the doctor’s profession is traveling. Travel expenses can be claimed so long as they are related to work. For instance, one can claim travel between two workplaces or hospitals, but not between home and work; the only times work-to-home expenses are deducted are when homes serve as personal clinics or offices.
Expenses for education, as well as professional subscriptions and memberships are deductible as these are all vital for expanding the knowledge and developing the skills of medical professionals.
There are numerous other deductions that doctors should claim to lower their taxes. To ascertain the other elements, help from accountants for Sydney medical professionals is necessary. Aside from tackling tax related concerns, these professional accountants can also offer in-depth analysis of a doctor’s finances.