Tax Planning for Doctors in Australia

We assist with tax returns, BAS and GST compliance, tax planning, family trusts and company structures, SMSF setup and compliance, medical practice advisory, bookkeeping and payroll, asset protection, investment structuring, and Australia–India cross-border tax advice.

The decision depends on your expected private income, practice opportunities, risk profile, and long-term goals.

Possibly — but holding an ABN does not automatically make you a genuine independent contractor. The ATO looks at the real substance of the arrangement: control over how and when you work, who bears the risk, whether you can delegate, and how you are paid. If the engagement is in reality employment, superannuation guarantee, payroll tax and PAYG obligations can still apply regardless of the ABN. The arrangement should be reviewed before you rely on it.

There is no fixed income threshold. Suitability depends on how the personal services income (PSI) rules apply to you, your mix of income sources, ownership and family circumstances, asset-protection risk, and your longer-term objectives. A structure that suits one doctor can be entirely wrong for another, so the decision should follow an individual review rather than a rule of thumb.

This depends on income levels, asset protection needs, family circumstances, future business plans, and investment objectives.

Family trusts can offer asset protection, succession planning and long-term wealth benefits. However, the personal services income (PSI) rules and professional-practice guidance can significantly restrict income splitting where the income is mainly a reward for your personal skills and efforts. A trust does not override these rules, so the expected benefits need to be tested against your circumstances first.

Service companies can assist with administration functions, employing staff, practice management, and business expansion.

Yes. Many doctors start simple and restructure as their circumstances evolve.

Common strategies include superannuation contributions, trust structures, income distribution planning, asset protection structures, investment planning, and timing of expenses and income.

Waiting until June to start tax planning.

Ideally throughout the year, with a formal review before 30 June.

Tax varies based on income, structure, deductions, investments, and superannuation contributions.

Super remains one of Australia's most effective tax planning tools.

Yes, subject to eligibility requirements.

An SMSF may be suitable if combined super balances are significant, you want greater investment control, or you are considering property investments.

Yes, but strict rules apply. The purchase must satisfy the sole-purpose test, be conducted on arm's-length terms, and comply with the related-party acquisition rules — residential property generally cannot be bought from, or leased to, a related party, while business real property can under specific conditions. Borrowing is only permitted through a limited recourse borrowing arrangement with its own structural requirements. Specialist advice before signing a contract is essential.

The answer depends on asset protection requirements, future income distribution, capital gains expectations, and borrowing considerations.

This depends on marginal tax rates, investment horizon, capital gains expectations, and future wealth extraction strategies.

Possibly. However, companies do not receive the 50% CGT discount, personal ownership may provide better long-term capital gains outcomes, and company ownership may provide cash-flow and asset-protection benefits. Professional modelling should be completed before investing.

Yes, provided the arrangement is genuine: real duties must actually be performed, the hours worked must be real and recorded, and the remuneration must be commercially reasonable for the work done — comparable to what you would pay an unrelated employee. Proper employment documentation, payroll and superannuation obligations all apply.

Potentially, but the same test applies: the duties, hours and pay must be genuine and commercially reasonable for the work actually performed. Paying wages mainly to shift income to a lower-taxed family member, without real work behind it, is likely to be challenged.

Common structures include family trusts, bucket companies, SMSFs, and testamentary trusts.

Not all of them. Many patient medical services are GST-free, but the exemption has limits — for example, cosmetic procedures that are not medically necessary, and some services supplied outside a recognised practitioner–patient relationship, can be taxable. Each service line in a practice should be classified individually rather than assuming everything is GST-free.

GST paid on eligible business expenses can usually be claimed through BAS.

The ATO uses PAYG instalments to collect tax progressively throughout the year.

Penalties and interest may apply.

This affects payroll tax, superannuation, GST, workers compensation, and employment obligations. Advice should be obtained before implementing arrangements.

Popular options include Xero, QuickBooks, and MYOB. The best choice depends on practice size and complexity.

If you employ staff, payroll software is generally essential for STP and super compliance.

Medical professionals face higher litigation and professional risk than many occupations. Structuring can help separate business and personal assets, but it has legal as well as tax dimensions — we can advise on the tax and structuring side, and where legal issues arise (such as trusts, guarantees or insolvency risk) we will recommend involving a qualified lawyer.

Common assets include the family home, investment properties, share portfolios, practice goodwill, and intellectual property.

Insurance is important but should form part of a broader asset protection strategy.

Australian tax residents generally declare worldwide income.

Often yes, depending on treaty and foreign tax paid.

Yes. This is one of our specialist areas.

Transferring funds is not automatically taxable in itself — the tax outcome depends on what the money represents. The source of the funds, your tax residency, whether capital gains or income arose before or after the transfer, and the quality of your documentation all need to be reviewed. Gifts, inheritances, savings and sale proceeds are each treated differently, so the transfer should be planned before the money moves.

Yes. We manage the transition process and liaise with your previous accountant.

Fees depend on compliance requirements, number of entities, advisory requirements, and complexity of affairs.

Typically income review, tax projections, super opportunities, investment planning, structure review, and asset protection review.