Tax Deductions for Medical Practitioners: The Complete Guide

Medical practitioners are among the highest tax contributors in Australia. Yet, due to long hours and complex employment arrangements (VMO vs Staff Specialist vs Private Practice), many doctors miss out on thousands of dollars in legitimate deductions.

Whether you are a GP, a surgeon, or a locum, ensuring you are claiming every eligible expense is critical to reducing your taxable income lawfully. Here is the definitive list of tax deductions for Australian medical professionals in 2026.

1. Professional Development & Education

Medicine is a career of lifelong learning. The ATO generally allows deductions for self-education if it relates directly to your current income-earning activities.

• Conferences & Seminars: Registration fees, airfares, and accommodation for medical conferences (both domestic and international) are deductible. Note: If you tack a holiday onto the end of a conference, you must apportion the costs.
• Medical Journals & Textbooks: Subscriptions to journals (e.g., The Lancet, BMJ) and reference books.
• College Fees: Annual fees paid to your specialist college (e.g., RACGP, RACP).

2. Medical Equipment & Tools

If you purchase equipment for your work, you can claim a deduction. This works in two ways:

• Under $300: Immediate deduction in the current financial year.
• Over $300: You must depreciate the asset over its effective life.

Common items include Stethoscopes, Doctor's Bags, Diagnostic Sets, and specialized IT equipment like iPads used for patient records.

3. Vehicle & Travel Expenses

Travel from home to your regular place of work is not deductible. However, there are exceptions common for doctors:

• Itinerant Work: If you travel between multiple hospitals or clinics in a single day.
• Bulky Equipment: If you must carry bulky medical equipment that cannot be stored at the hospital (rare and strictly audited).
• On-Call: Travel when called back to the hospital for an emergency is generally not deductible unless your home is considered a 'base of employment' (seek specific advice here).

4. Insurance & Indemnity

Medical Indemnity Insurance is one of your largest professional expenses. Fortunately, it is 100% tax-deductible. You can also claim Income Protection Insurance premiums (but not Life or Trauma insurance).