Tax and accounting for doctors and GPs.
Whether you're a GP principal, a contracted specialist billing through a practice, or a hospital VMO with private rooms on the side, you can generally claim your registration, indemnity insurance, CPD and equipment against your medical income. What you can't do is simply split that income with a family trust or a spouse, since personal services income rules attach it to the person who actually did the work. This guide covers what doctors typically claim, how GST applies once cosmetic work or reports enter the mix, and how we structure practices and service entities so they hold up to scrutiny. We're Brisbane based and work with doctors and GPs across Australia.
Updated July 2026 · Reviewed by the LINK Advisors team
What doctors & gps 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.
AHPRA registration and indemnity insurance
Your annual AHPRA registration fee and medical indemnity insurance premiums are generally deductible as core costs of holding the right to practise.
College fees, CPD and conferences
Fellowship and college membership fees, CPD points courses and conference costs including travel are generally deductible where they maintain or build on your existing medical skills.
Medical equipment and instruments
Diagnostic equipment, instruments and clinic technology you buy for your practice or consulting room are generally deductible, either upfront or depreciated depending on cost - check the current instant asset write-off threshold with us.
Service or room fees paid to a practice entity
Fees you pay a service entity for rooms, staff and admin support are generally deductible, provided the arrangement is commercial and properly documented - this is exactly the kind of arrangement that draws ATO attention when it isn't.
Professional subscriptions and journals
Subscriptions to medical journals, clinical decision-support tools and professional bodies relevant to your practice are generally deductible.
Income protection insurance
Premiums for income protection insurance held outside super and tied to your medical income are generally deductible.
Locum, hospital rounds and home-visit travel
Travel between hospitals, practices or patients' homes as part of your work is generally deductible, though the trip between home and your regular workplace generally isn't.
Telehealth and practice software
Telehealth platforms and practice management software subscriptions used to deliver and record patient care are generally deductible.
Study and exam costs for further qualifications
Courses and exams that build on your existing medical qualification, such as moving into a subspecialty, are generally deductible where they relate to your current earning activity.
Home office for admin, on-call and telehealth
If you do rostering, admin or telehealth consultations from a space at home, a portion of your running costs may be deductible under the ATO's fixed rate method - ask us what applies.
GST: mostly free, with traps.
Most consultations and medically necessary treatment you provide as a doctor are GST-free, which is the default most GPs and specialists work under without much thought. The traps show up around the edges: cosmetic procedures that aren't for a medical reason, some medico-legal or insurance reports, and equipment or facility fees charged separately from the consultation can all be taxable supplies, even though the bulk of your billing sits GST-free.
Where your practice sells anything alongside treatment, such as skincare products or non-essential devices, that's generally a taxable sale, not a GST-free medical service, and it needs its own tax code in Xero rather than being lumped in with consultation income.
If you're running or billing through a practice entity, getting the GST-free and taxable lines split correctly in your invoicing and BAS matters more as billing volume grows. We set the tax codes up once and check them as your service mix changes.
The right structure for the work.
Personal services income rules mean the fee your patients or the practice pay for your professional effort generally can't be split off to a family trust or a lower-taxed associate, no matter how the invoicing is dressed up. Service entities that charge you a commercial fee for rooms, staff and admin remain a legitimate structure, and contracted practitioner arrangements are under active payroll tax scrutiny in several states, with outcomes turning on how your contracts and payment flows are actually set up. If your arrangements haven't been reviewed since the recent state revenue office activity, that review is worth doing properly rather than waiting for a letter.
Run the work, we run the numbers.
Practice management systems like Best Practice, MedicalDirector and Cliniko handle your clinical records, billing and Medicare claiming, and connecting them to Xero properly means your practice income, gap payments and practitioner splits reconcile without you or your bookkeeper re-entering anything. We set that link up once and keep the Xero side current so the numbers behind the practice are ready whenever you need them, not just at tax time.
Frequently asked questions.
Can I split my medical income with my spouse or a family trust?
Generally no, not for the income that reflects your personal professional effort. Personal services income rules attach that income to you regardless of which entity invoices for it, though genuinely separate business income, such as a service entity charging commercial fees for rooms and staff, is treated differently. We can look at your specific arrangement and tell you where the line sits.
Does payroll tax apply to me as a contracted GP or specialist?
It might. Several state revenue offices have applied payroll tax to contracted practitioner arrangements, and the outcome depends on your specific contracts and how payments actually flow. If your practice hasn't had this reviewed recently, it's worth doing now rather than after an assessment arrives, since these can be retrospective.
Can I claim my AHPRA registration and college fees?
Yes, generally. Your registration fee, college membership and CPD courses required to maintain your qualification are deductible costs of practising medicine.
Do I charge GST on my consultations?
Most medically necessary consultations and treatment are GST-free. Where you're doing cosmetic work without a medical reason, or writing certain reports for insurers or third parties, GST can apply, so it pays to have your billing categories set up correctly rather than assuming everything is GST-free.
Should my practice use a service entity?
Service entities remain a legitimate and common structure in medical practice, but only where the fees charged are commercial and the paperwork matches what actually happens. We build and document these arrangements so they hold up if the ATO or a state revenue office looks closely.
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