Tax and accounting for dentists.
Whether you own a practice, work as an associate under someone else's chair, or run several sites, you can generally claim your equipment, indemnity insurance, lab fees and CPD against your dental income, and getting the GST split right between general and cosmetic work matters more than most dentists realise. This guide covers what dentists typically claim, where GST applies to cosmetic treatment, and how we handle associate agreements and practice structures. We're Brisbane based and work with dentists across Australia.
Updated July 2026 · Reviewed by the LINK Advisors team
What dentists can claim.
Ordered by typical value. Every claim still has to pass the ATO's tests: you paid for it, it relates to earning your income, and you can show a record.
Dental chairs and clinical equipment
New chairs, imaging equipment and other clinical technology are generally deductible, either claimed outright or depreciated depending on cost - check the current instant asset write-off threshold with us.
Indemnity insurance and registration
Your Dental Board registration and professional indemnity insurance premiums are generally deductible as core costs of practising.
Laboratory fees
Fees paid to dental technicians for crowns, dentures and other appliances are generally deductible as a cost of delivering treatment to the patient.
CPD and college membership
Continuing professional development courses and college or association membership fees are generally deductible.
Practice management software
Subscriptions to clinical and scheduling software such as Dentrix, Exact or Core Practice are generally deductible.
PPE and sterilisation consumables
Gloves, masks and other single-use items, along with sterilising equipment servicing, are generally deductible.
Associate or service fees
Payments made under an associate or service arrangement are generally deductible, provided the agreement is genuine and properly documented.
Public liability and business insurance
Premiums for public liability and general business insurance tied to the practice are generally deductible.
Staff training
Infection control training and certification renewals for chairside staff are generally deductible as a cost of running the practice.
Work vehicle and CPD travel
Travel between sites for a multi-location practice, or to attend continuing education, is generally deductible for its business-use portion.
GST: general treatment free, cosmetic often isn't.
General dental treatment aimed at maintaining or restoring a patient's oral health is generally GST-free when supplied by a dentist. Purely cosmetic procedures that aren't for a health reason, such as some teeth whitening, are generally a taxable supply, which means dentists running a mixed general and cosmetic practice need their billing categorised correctly rather than treating every chair fee as GST-free.
Lab fees you pay for crowns, dentures and other appliances are a cost of delivering treatment to the patient, and the GST credit on what you pay the lab is separate from how you bill the patient for the finished work.
Practices selling retail items such as electric toothbrushes or whitening kits over the counter are making a taxable sale of goods, not supplying GST-free dental treatment, so that revenue needs its own tax code in Xero.
The right structure for the work.
Associate dentist arrangements sit somewhere between employment and genuine contracting, and getting that classification right affects tax, super and, in several states, payroll tax exposure for the practice. Practice ownership structures also matter more as you add associates or a second site, since asset protection and how profit is shared become real decisions rather than defaults. We look at your associate agreements and ownership structure together, because the two are rarely separate questions in practice.
Run the work, we run the numbers.
Practice software like Dentrix, Exact and Core Practice runs your clinical notes, scheduling and billing, and connecting it to Xero properly means your chair fees, lab costs and associate splits reconcile automatically instead of being rebuilt by hand each month. We set the integration up once and keep your Xero file current so you can see what each chair, or each associate, actually generates.
Frequently asked questions.
Is teeth whitening GST-free?
Generally not, where it's a purely cosmetic procedure rather than treatment for a health reason. It's worth having your cosmetic services checked and coded correctly rather than assuming every chair fee sits GST-free.
Do I charge GST on a routine check-up?
Generally no. A standard dental examination and treatment aimed at maintaining oral health is a GST-free supply when provided by a dentist.
Can I claim my dental chair and equipment?
Yes, generally, either claimed outright or depreciated depending on the cost. Keep the purchase invoice and a note of how the equipment is used in the practice.
Am I an associate or an employee?
It depends on how the agreement is actually structured and how much control the practice owner has over your work, not just on what the contract is titled. This affects tax, super and payroll tax, so it's worth having reviewed properly.
Should I buy or lease new equipment?
It depends on your cashflow, your structure and the depreciation or instant asset write-off treatment available at the time. We model both options so you can see the after-tax outcome before you commit.
Talk to an accountant who knows dentist businesses.
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