Tax and accounting for optometrists.
Whether you own an independent optical practice, work under a franchise banner, or locum between practices, you can generally claim your clinical equipment, indemnity insurance and CPD against your income, and separating GST-free eye examinations from taxable glasses and contact lens sales is the single biggest accounting quirk of running an optical practice. This guide covers what optometrists typically claim, how GST splits between consultation and retail, and how frame and lens inventory sits in Xero. We're Brisbane based and work with optometrists across Australia.
Updated July 2026 · Reviewed by the LINK Advisors team
What optometrists 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.
Optical clinical equipment
Autorefractors, slit lamps, retinal cameras and other clinical equipment are generally deductible, either claimed outright or depreciated depending on cost - check the current instant asset write-off threshold with us.
Registration and indemnity insurance
Your AHPRA registration and professional indemnity insurance are generally deductible.
CPD, college fees and conferences
Continuing professional development and conference costs relevant to your practice are generally deductible.
Practice and dispensing software
Subscriptions to optical-specific practice management and dispensing software are generally deductible.
Frame and lens stock
Frames, lenses and contact lenses held for sale are treated as inventory rather than a straight expense, and need proper tracking in Xero.
Retail fit-out and dispensing area
Costs of fitting out the dispensing and retail area of your practice are generally deductible, either upfront or depreciated depending on cost.
Work vehicle for locum work
Travel between practices as a locum optometrist is generally deductible for its business-use portion.
Professional association membership
Membership fees for relevant optometry bodies are generally deductible.
Staff optical dispensing training
Training costs for dispensing staff are generally deductible as a cost of running the practice.
Public liability and business insurance
Premiums tied to the practice are generally deductible.
GST and BAS, done right.
Eye examinations and clinically necessary consultations are generally GST-free when supplied by an optometrist. The sale of glasses, frames, lenses and contact lenses that follows the examination is generally a taxable supply of goods, which makes optical practices one of the more mixed-supply businesses in allied health, most patient visits involve both a GST-free consultation and a taxable retail sale in the same transaction.
Getting the point-of-sale and Xero tax codes to split consultation fees from retail sales correctly matters more here than in most allied health practices, since the retail component is often the larger dollar figure on the invoice even though the exam is the clinical service.
Frame and lens stock also needs to be tracked as inventory rather than expensed as a simple purchase, since it sits on hand until sold and affects your reported profit differently to a straightforward business expense.
The right structure for the work.
Independent optometrists, franchise operators and locums all face different structuring questions. Franchise-style arrangements carry their own fee and royalty structures that need to be modelled alongside your personal tax position, while independent practice owners have more flexibility over company and trust structures as they add optometrists or open a second location. Locums typically start as sole traders, with the usual contractor-versus-employee question worth checking against how each practice actually engages you.
Run the work, we run the numbers.
Optical-specific practice and dispensing software handles clinical records, frame and lens inventory and patient recalls, and connecting it properly to Xero means consultation fees, retail sales and stock levels reconcile without manual re-entry. We set up inventory tracking correctly from the start, since getting frame and lens stock wrong in Xero is one of the more common issues we see when optical practices come to us from elsewhere.
Frequently asked questions.
Is my eye test GST-free?
Generally yes, where it's a clinically necessary consultation supplied by an optometrist.
Do I charge GST on glasses and contact lenses I sell?
Generally yes, these are a taxable supply of goods separate from your GST-free consultation, and need their own tax code in your invoicing and point-of-sale system.
How should frame and lens stock be tracked in Xero?
As inventory, not a straight expense, since it sits on hand until sold. We set this up properly so your reported profit reflects what's actually happened in the practice.
I locum across a few practices, am I a contractor or employee?
It depends on how each practice actually engages you, not just the label on the arrangement. Worth having each reviewed if you're unsure.
Should I run independently or under a franchise?
It depends on the numbers behind each option, including franchise fees and royalties versus the flexibility of running independently. We model both so you can see the after-tax outcome.
Talk to an accountant who knows optometrist businesses.
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