Most doctors and dentists lose deductions not because they were not entitled to them, but because the records were a mess and the detail was missing by the time it reached the accountant. We do the bookkeeping side of this for practitioners, so here is the plain-English version: the deductions people in your field commonly claim, and exactly what to hand over so nothing slips through. What you can claim is your accountant's decision, our job is to make sure the data is clean enough for them to get it right.
Common deductions doctors and dentists discuss with their accountant
Every deduction has to relate directly to earning your income, and your circumstances decide what is in or out. With that said, these are the categories that come up most often for medical and dental professionals:
- Registration and memberships. AHPRA registration, college and association memberships, and professional subscriptions tied to your work.
- CPD and training. Continuing professional development, courses, conferences and the related materials, where they maintain or improve the skills you are paid for.
- Professional indemnity and work insurance. Indemnity cover is a core cost of practising and is commonly claimed.
- Equipment and supplies. Instruments, loupes, a stethoscope, clinical consumables and the like. Individual items under $300 can often be claimed in full in the year you buy them, while dearer items are depreciated over their effective life.
- Work-related travel. Travel between hospitals, clinics and patient visits during your day, and travel to conferences (more on this below).
- Specialised clothing. Scrubs, lab coats and protective gear. Ordinary business attire is not deductible, even if you only wear it for work.
- Home office running costs, where you genuinely do work from home, on a reasonable, substantiated basis.
The current rules and rates for each of these sit with the ATO's deductions guidance, and your accountant applies them to your situation. This page is about getting you organised, not about telling you what to claim.
Can you claim travel between clinics?
This is one of the most common questions, and the answer is often yes, with a catch. Travel between different work sites during your day, clinic to hospital, hospital to a patient visit, can usually be claimed, along with parking and tolls, and so can travel to professional conferences. What you cannot claim is your ordinary commute from home to your main workplace and back.
To claim motor vehicle and travel costs you generally need a logbook and the supporting receipts. The trick is simply to keep them as you go. A logbook reconstructed in a panic the night before your accountant meeting is worth far less than one kept honestly across the year, and it is one of the easiest things for a bookkeeper to keep ticking over for you.
What to give your accountant (and how to hand it over)
Here is the part that saves you money and your accountant's time. The cleaner the data, the lower your fee and the fewer deductions missed. Give them:
- Receipts for every claimed expense, legible and showing the supplier, what it was, the amount and the date. Digital copies are fine as long as they are organised and easy to find.
- A motor vehicle logbook and travel receipts for trips between sites and to professional events.
- Income records from every place you work, so nothing is left off, this matters most when you earn across multiple sites.
- Invoices and payment records, including anything you have paid as a contractor.
- CPD and registration records, so those deductions are not forgotten.
- A note on your work arrangement, salaried, locum, contractor, or working across several clinics, because the obligations and deductions differ.
The single biggest difference is whether this arrives as a shoebox or as a clean, reconciled set of accounts. When we keep your books in Xero through the year, your accountant opens one tidy file instead of chasing you for receipts, and that is where the real saving is.
If you work under a service facility agreement
If you are a doctor or dentist working under a service facility agreement (SFA), there is extra for your accountant to see. Flag your multiple income sources and how each is paid, any equipment you are depreciating, your superannuation position, and the terms of the agreement itself. SFAs can create super and payroll tax questions at the practice level that interact with your own affairs, so your accountant wants the full picture.
If you own or run the practice, the super and payroll tax side is worth understanding in its own right, we cover it in SFA arrangements and superannuation for doctors and dentists. For how we support practices generally, see our dental practice bookkeeping and medical practice bookkeeping guides under who we work with.
Your tax-time checklist
Print this, or keep it in Xero, and tick as you go through the year rather than at the end.
| Have ready | Why your accountant needs it |
|---|---|
| Receipts, sorted (supplier, item, amount, date) | Substantiates every deduction; no receipt can mean no claim |
| Motor vehicle logbook + travel receipts | Needed to claim between-site and conference travel |
| Income statements from each work site | Makes sure all income is declared and nothing is doubled up |
| Registration (AHPRA) & CPD records | Common deductions that are easily forgotten |
| Professional indemnity & insurance invoices | A core, claimable cost of practising |
| Equipment purchases over $300 | Flagged for depreciation rather than an instant claim |
| Your work arrangement + SFA terms | Changes your obligations and what is deductible |
Want your books kept clean all year so tax time is a tidy handover, not a scramble? Book a free call or email us at info@truetally.com.au, and we will get your data accountant-ready.
Further reading: the ATO's deductions and records guidance, and independent checklists from H&R Block and Findex for medical professionals.
Frequently Asked Questions
What can doctors and dentists commonly claim as tax deductions?
Categories commonly discussed with an accountant include AHPRA registration and memberships, CPD and training, professional indemnity and work insurance, equipment and supplies (items under $300 often claimable in full, dearer ones depreciated), work travel between sites and to conferences, specialised clothing like scrubs, and home-office running costs where you genuinely work from home. What you can actually claim depends on your situation and is your accountant's call.
Can I claim travel between clinics?
Often yes. Travel between hospitals, clinics or patient visits during your day, plus parking, tolls and travel to conferences, can be claimable. Your ordinary home-to-main-workplace commute is not. You generally need a logbook and receipts, so keep them through the year rather than reconstructing them at year end.
What records should I give my accountant?
Organised receipts (supplier, item, amount, date), a motor vehicle logbook and travel receipts, invoices and payment records, CPD and registration records, and income statements from each work site. Digital copies are fine if well organised. Also tell them your work arrangement, since locums and contractors across multiple clinics, including under an SFA, can have different obligations to salaried staff.
What should I flag if I work under an SFA?
Flag your multiple income sources and how each is paid, equipment that needs depreciating, your super position, and the terms of your service facility agreement. SFAs can create super and payroll tax questions at the practice level that interact with your own return, so your accountant wants the full picture. Clean bookkeeping through the year makes it faster and cheaper.
How long do I need to keep my records?
Generally five years from when you lodge, and longer while an asset is still being depreciated. The ATO can ask you to substantiate a deduction, and without the receipt or logbook it can be denied. Keeping records as you go, rather than hunting at tax time, is the biggest time-saver, and it is exactly what a bookkeeper maintains for you.