Australian Doctor Tax Deductions 2025: 22 Essential Questions Answered

From locum travel expenses to CPD requirements and essential theatre footwear (Birkenstocks), Australian doctors navigate a complex web of tax-deductible costs that aren't always clear-cut. With rotating rosters across multiple facilities and the ATO's changing guidelines, preparing your tax return can feel as demanding as another night shift.

To cut through the confusion, we’ve boiled the legislation down to 22 laser-focused questions every clinician should ask before lodging. Each section tells you:

• Whether the expense is deductible (and why)
• Which records the ATO expects in an audit
• Common traps that trip up even seasoned practitioners

This article is general information, not personal tax advice. Always confirm how these rules apply to your circumstances with a registered tax agent.

Read on to make sure your next return works as hard as you do—without crossing the ATO’s red line.

• Can I claim my AHPRA (or other medical association) membership fees in full?
• What part of my annual practising certificate cost is deductible, and what isn’t?
• Where’s the line on books, journals and e-subscriptions—when is it an immediate write-off versus depreciation?
• Do scrubs, lab coats and non-slip shoes count as a uniform or “conventional clothing”?
• I keep a stethoscope and ophthalmoscope in my car—does that make my home-to-work travel claimable?
• Which car-expense method (logbook vs cents-per-km) usually works out better for locum GPs?
• Can I claim parking at the hospital if it’s my regular workplace?
• What records do I need for my phone and data to support after-hours patient calls?
• Is professional indemnity insurance always deductible—even if partly reimbursed?
• How do I depreciate “big-ticket” medical equipment (>$300) like an ultrasound probe or loupes?
• When do protective glasses or anti-glare lenses become deductible safety gear?
• I travelled interstate for a one-week conference and added a weekend getaway—how do I apportion the costs?
• Which self-education courses count: CPD only, or can I include a Master’s degree?
• Can I claim meal allowances when I’m on overnight locum stints?
• What’s the simplest way to calculate working-from-home deductions for telehealth sessions?
• Are childcare costs ever deductible for shift-working doctors?
• Do fines (parking, speeding) incurred while making patient house calls get any tax relief?
• What documentation does the ATO expect for seminar, conference or training
• Can I claim my Heidi Health AI-scribe subscription?
• Can I claim my Lyrebird AI medical-scribe subscription or licence fee?

Can I claim my AHPRA (or other medical association) membership fees in full?

Yes – fees paid to the AHPRA or any recognised specialist college are fully deductible because they maintain your ability to earn income.

Claim them under “Union & professional fees”, provided the cost isn’t reimbursed and you keep the receipt or rely on the figure shown on your income statement.

Explainer

• Whose name is on the invoice? You must pay the fee yourself; reimbursements void the deduction.
• Timing: Claim in the income year you pay it, even if coverage extends into the next year.
• Multiple bodies: RACGP, ACEM, specialty societies and indemnity funds also qualify if relevant to current duties.
• Record-keeping: Keep invoices or payment summaries for five years in case of audit.

Is the yearly AHPRA cost is deductible, and what isn’t?

Renewing your annual practising certificate is fully deductible, but the first-time registration fee is not.

The renewal directly supports your current income, so list the amount under “Other work-related expenses”. Keep the AHPRA (or state board) invoice and claim it in the year of payment, even if it overlaps financial years.

Explainer

• Initial registration: Viewed as a capital cost for starting work – no deduction.
• Renewals: 100 % deductible when linked to existing employment.
• Inter-state moves: Claim only the renewal tied to the job that generates income.
• Evidence: Receipt, credit-card statement or payslip notation.

Where’s the line on books, journals and e-subscriptions – when is it an immediate write-off versus depreciation?

Work-related publications costing $300 or less (per item or per set) can be claimed outright. Anything above that threshold, or a set whose combined price exceeds $300, must be depreciated over its effective life. Split costs if private use exceeds 50%, and spread prepaid multi-year subscriptions across those years.

Explainer

• Instant deduction (< $300): Individual textbooks, monthly e-journals, clinical apps.
• Depreciation (> $300): Multi-volume atlases, year-long digital licences, large reference works.
• Private study: Apportion if personal use is material.
• Advance payments: Allocate pro-rata across each tax year covered.
• Library log: Title, purchase date, cost, and remaining depreciation.

Do scrubs, lab coats and non-slip shoes count as a uniform or “conventional clothing”?

Deductible workwear must be protective, occupation-specific or a compulsory logoed uniform.

Scrubs, embroidered lab coats and enclosed non-slip safety shoes qualify; ordinary business attire does not, even if mandated by your employer. Laundry can be claimed per ATO guidelines ($1 per work-only load, $0.50 mixed), with receipts required once total costs exceed $150.

Explainer

• Protective: Non-slip shoes, splash-proof gowns, anti-bacterial scrubs.
• Occupation-specific: Lab coat displaying hospital logo or name embroidery.
• Not deductible: Suits, blouses, generic black trousers.
• Laundry & maintenance: Use ATO rates or actual receipts; repairs and dry-cleaning are claimable.
• Employer-provided items: No deduction if supplied or reimbursed.

I keep a stethoscope and ophthalmoscope in my car – surely my home-to-work travel is then claimable?

Home-to-work travel remains private unless you transport bulky, essential equipment that lacks secure on-site storage.

Handheld instruments are too small to meet the “bulky” test, so the commute is non-deductible. However, travel between separate jobs or to an alternative workplace on the same day is deductible using either the logbook or cents-per-kilometre method.

Explainer

• Bulky test (all must apply):
  1. Equipment is vital to duties.
  2. Size/weight makes public transport impractical.
  3. Only convenient transport is by car.
  4. No safe storage at work.
• Examples that pass: Portable ultrasound or ventilator with nowhere secure at the clinic.
• Alternative workplace rule: Consulting rooms → hospital, hospital → nursing home, etc.
• Method choice: Logbook (actual cost %) vs cents/km (max 5,000 km).
• Evidence: Valid logbook, odometer readings, fuel and maintenance receipts.

Which car-expense method (logbook vs cents-per-km) usually works out better for locum GPs?

For most high-mileage locums who rack up long rural drives or frequent multi-site shifts, the logbook method tends to deliver the larger deduction.

That’s because you (a) capture every actual running cost – fuel, servicing, insurance, tyres, depreciation – and (b) apply your work-use percentage (from a 12-week logbook) to the total. In contrast, the cents-per-kilometre method is capped at 5,000 km a year and, for 2024-25, gives a flat 88 c per kilometre (max claim = $4,400).

Explainer

• When logbook wins: expensive vehicle, high fuel/maintenance outlay, >5,000 work km, or >70 % work use.
• When cents-per-km wins: modest car costs, sporadic locum driving under 5,000 km, or no desire to keep detailed receipts.
• Evidence needed:
  • Logbook: 12 continuous weeks every five years, odometer start/finish, purpose of each trip.
  • Cents-per-km: ability to show how you calculated the kilometres (e.g. roster diary, calendar, navigation logs).

You can read a bit more about it all here direct from the ATO

Can I claim parking at the hospital if it’s my regular workplace?

No. Parking fees incurred at or near your regular place of work are private expenses, even if the hospital is cash-only, charges staff, or requires a swipe pass.

Only parking on work-related trips away from your usual base (e.g. clinic to hospital, hospital to outreach clinic) is deductible.

Explainer

• Regular vs alternative workplace: Your “regular” site is where you ordinarily start and finish shifts. Anywhere else on the same day counts as an alternative workplace.
• Locum exception: If you truly have shifting workplaces (no fixed base), then each hospital is an alternative site and parking becomes claimable. Document your roster pattern to substantiate this.
• Record-keeping: keep receipts or digital statements; note date, location, and purpose of trip.

See more here from the ATO.

What records do I need for my phone and data to support after-hours patient calls?

You must show both the cost incurred and your work-use percentage. The ATO accepts:

1. Itemised bill method – mark work calls during a representative 4-week period each income year. Work out the work-use % of total calls/data and apply it to the annual cost. =
2. Incidental claims up to $50 – if work use is minor, you can claim ≤$50 without detailed bills, but you still need to justify the figure (e.g. roster diary, call logs).

Explainer

• Include SIM-only plans, eSIMs, VoIP subscriptions and pager apps if you pay for them.
• Exclude employer-provided or reimbursed services.
• Keep screenshots or PDFs of highlighted bills for five years.

Is professional indemnity insurance always deductible — even if partly reimbursed?

Yes, the premium is deductible to the extent you pay it and it relates to your current medical work. Where your employer reimburses part of the cost, only claim the unreimbursed portion; double-dipping triggers an ATO adjustment.

Explainer

• Deduct under “Other work-related expenses”.
• Policies covering both private and public work must be apportioned if there is any private (non-income-producing) coverage.
• Keep the renewal notice showing premium, period of cover and any employer contribution.

How do I depreciate “big-ticket” medical equipment (>$300) like an ultrasound probe or loupes?

For items costing more than $300 (or sets totalling over $300) you claim decline in value over their effective life rather than an upfront write-off.

Explainer

• Effective life: Use ATO’s default tables or self-assess if the item will wear out faster in a clinic setting.
• Method: Straight-line or diminishing value; many clinicians choose diminishing value for larger first-year deductions.
• Private use: Apportion if you also use the equipment for teaching, demonstrations at home, or lending to colleagues.
• Tooling up mid-year: Depreciate only for the part of the income year you owned the item.
• ATO Depreciation & Capital Allowances Tool: Generates schedules and automatically feeds the figures into “D5 – Other work-related expenses”.

What’s the simplest way to calculate working-from-home deductions for telehealth sessions?

Use the ATO fixed-rate method: multiply your telehealth hours by the relevant per-hour rate (67 ¢ for 2023-24; 70 ¢ for 2024-25). The rate already covers electricity, heating/cooling, phone, mobile data and internet. Keep either:

• a 12-week representative diary of work hours, or
• actual daily time-logs if your sessions vary.

You may still claim, separately, the work-related decline in value of laptops, webcams and ergonomic chairs, plus their repairs.

Are childcare costs ever deductible for shift-working doctors?

No. Childcare (including nannies, school-holiday programmes and before/after-school care) is always treated as a private expense, regardless of unpredictable rosters or overnight call. The ATO has consistently ruled that these costs lack the necessary connection with earning employment income.

Do fines (parking, speeding) incurred while making patient house calls get any tax relief?

None. Fines and penalties are never deductible, even when the infringement happens during otherwise claimable business travel. The ATO’s view is that a breach of the law can’t create a tax benefit; you bear the full cost personally.

What documentation does the ATO expect for seminar, conference or training claims?

Provide a clear audit trail showing:

1. Purpose and connection – agenda, flyer or registration email linking content to your current medical role.
2. Financial evidence – tax invoices or receipts for registration, airfares, accommodation, meals and incidentals.
3. Travel diary – dates, location, work vs private days (essential if overseas or >5 nights away).
4. Employer reimbursements – statements proving any amounts you personally bore.

The ATO have some good documentation on this here. If the conference has a hybrid work/holiday component, record how you apportioned costs.

How do relocation expenses differ from travel expenses when moving to a new hospital role?

• Relocation (non-deductible): hiring removalists, temporary accommodation, flights for you or your family, new lease bonds, utility connections. The ATO treats these as private outlays incurred to start earning income, so no deduction or FBT concession applies.
• Work-related travel (deductible): ongoing trips you undertake after employment has begun—such as locum flights, overnight accommodation and meals for rural outreach clinics—provided they meet the usual substantiation rules.

Keep relocation invoices separate from claimable work-travel receipts to avoid accidental over-claims.

When do protective glasses or anti-glare lenses become deductible safety gear?

Protective eyewear – including anti-glare, photochromatic, sunglasses or safety goggles – is deductible only where both of these conditions hold:

1. Wearing the glasses directly protects you from a real and likely risk of injury or illness in your work environment (for example, surgical lights, laser glare or chemical splashes).
2. There is a clear connection with your duties as a doctor, specialist or allied-health professional.

So whilst you can likely claim your ENT googles, your wrap around Oakley’s might be a push. Claim only the work-related portion and keep purchase receipts. Prescription reading glasses or everyday contact lenses remain private expenses.

I travelled interstate for a one-week conference and added a weekend getaway – how do I apportion the costs?

First work out which costs relate solely to the five conference days and which relate to the two private days:

Document the dates, purpose and apportionment method in a travel diary. If your employer reimburses any amount, reduce your claim accordingly.

Which self-education courses count: CPD only, or can I include a Master’s degree?

The ATO say a course is deductible when it maintains or improves the specific skills you use in your current medical role, or is likely to increase your income from that role. Therefore:

• CPD and fellowship modules that keep your registration current are squarely deductible.
• Postgraduate qualifications (e.g. Master of Public Health, or a Masters of Traumatology) can also be claimed if the content deepens skills you already use or will clearly boost earnings in the same field.
• Study that only helps you change specialities or careers (e.g. a psychologist commencing a paramedic degree) is not deductible.

Include fees, textbooks, stationery and a proportion of equipment depreciation (laptop > $300, etc.).

HECS-HELP or FEE-HELP repayments themselves are never deductible.

Can I claim meal allowances when I’m on overnight locum stints?

Yes – but only where all of these apply:

1. You sleep away from home overnight in order to perform your locum duties.
2. You receive a bona fide travel allowance (shown separately on your income statement).
3. You include that allowance as income in your tax return.

If you spend up to the Commissioner’s “reasonable amounts” you don’t need receipts; simply keep a diary and claim the actual amount spent (not automatically the allowance).

Spend above those thresholds and you must keep receipts for every meal.

What’s the simplest way to calculate working-from-home deductions for telehealth sessions?

Use the ATO fixed-rate method: multiply your telehealth hours by the relevant per-hour rate (67 ¢ for 2023-24; 70 ¢ for 2024-25). The rate already covers electricity, heating/cooling, phone, mobile data and internet. Keep either:

• a 12-week representative diary of work hours, or
• actual daily time-logs if your sessions vary.

You may still claim, separately, the work-related decline in value of laptops, webcams and ergonomic chairs, plus their repairs.

You can find some more information about working from home expenses here

Are childcare costs ever deductible for shift-working doctors?

No. Childcare (including nannies, school-holiday programmes and before/after-school care) is always treated as a private expense, regardless of unpredictable rosters or overnight call. The ATO has consistently ruled that these costs lack the necessary connection with earning employment income.

Do fines (parking, speeding) incurred while making patient house calls get any tax relief?

None. Fines and penalties are never deductible, even when the infringement happens during otherwise claimable business travel.

The ATO’s view is that a breach of the law can’t create a tax benefit; you bear the full cost personally.

What documentation does the ATO expect for seminar, conference or training claims?

Provide a clear audit trail showing:

1. Purpose and connection – agenda, flyer or registration email linking content to your current medical role.
2. Financial evidence – tax invoices or receipts for registration, airfares, accommodation, meals and incidentals.
3. Travel diary – dates, location, work vs private days (essential if overseas or >5 nights away).
4. Employer reimbursements – statements proving any amounts you personally bore.

You can find out more here, If the conference has a hybrid work/holiday component, record how you apportioned costs.

How do relocation expenses differ from travel expenses when moving to a new hospital role?

• Relocation (non-deductible): hiring removalists, temporary accommodation, flights for you or your family, new lease bonds, utility connections. The ATO treats these as private outlays incurred to start earning income, so no deduction or FBT concession applies.
• Work-related travel (deductible): ongoing trips you undertake after employment has begun—such as locum flights, overnight accommodation and meals for rural outreach clinics—provided they meet the usual substantiation rules.

Keep relocation invoices separate from claimable work-travel receipts to avoid accidental over-claims.

Can I claim my Heidi Health AI-scribe subscription?

Yes – when the licence is used chiefly to create or streamline patient documentation in the course of your paid clinical work, the cost qualifies as a work-related software expense.

Explainer

• Work nexus: Heidi Health’s platform listens to consultations and auto-generates structured clinical notes, letters and forms, letting doctors “save time & focus on care”.
• Because the service directly supports income-producing duties, its fees meet the ATO’s “incurred in earning assessable income” test. .
• Records: Save invoices (or app-store receipts), credit-card statements and, where possible, Heidi’s usage logs that show professional activity; store them for five years.
• Free tier: Heidi’s “free-forever” plan costs nothing, so there’s no deduction to claim—only paid upgrades create a tax deduction.

Can I claim my Lyrebird AI medical-scribe subscription or licence fee?

Yes—when the software is used chiefly to draft patient notes or letters as part of your clinical duties.

Explainer

• Work nexus required – ATO rules let you deduct digital tools used to earn your income; Lyrebird’s core purpose is clinical documentation, satisfying that test for doctors.
• Evidence – save invoices, credit-card statements and user logs showing professional usage; ATO accepts digital PDFs.

Quick wrap-up

Australian doctor deductions boil down to one guiding rule: you can only claim costs that are genuinely incurred while earning your clinical income and aren’t reimbursed by anyone else. Everything else—no matter how job-related it feels—stays private.

Key take-aways for 2024-25

• Car expenses:
  • Cents-per-km pays 88 c for up to 5,000 work kilometres.
  • Logbook lets heavy-driving locums deduct their share of fuel, servicing and depreciation—but you must keep a representative 12-week log every five years.
• Parking: Fees at, or near, your regular hospital or clinic are private and non-deductible.
• Working from home: The fixed-rate method is now 70 c per telehealth hour and already covers power, phone and internet. Keep a time log or 12-week diary.
• AI medical scribes: Paid plans from Heidi Health or Lyrebird are deductible when used mainly for patient documentation; apportion if there’s personal use.
• Record keeping: Save invoices, usage logs and diaries for five years to defend every claim.

Final word

We love a good recommendation — so if you think you’ve got a good accountant who deserves a shout out then let us know. We’ll be sure to include their details on our Medlo Newsletter.

This guide is general information, not personal tax advice. Tax law shifts and everyone’s circumstances differ, so check the latest ATO rulings or speak with a registered tax agent before you lodge.

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