Doctors, specialists or other medical professionals
Income, allowances and work-related deductions
This ATO guide is for employed medical professionals working in hospitals, private practice or medical facilities — GPs, surgeons and other specialists, plus dentists, psychologists, physiotherapists, optometrists, pharmacists, pathologists and lab technicians. It explains what pay and allowances to declare and which work expenses you can deduct, from AMA fees and practising certificate renewals to scrubs, medical equipment and professional indemnity cover. Nurses, midwives and paramedics are covered by separate ATO guides.
The three golden rules for a work-related deduction
• You spent the money yourself and were not reimbursed.
• The expense directly relates to earning your income.
• You have a record, usually a receipt, showing you incurred it.
Income and allowances to declare
• Declare all salary and wages, including cash and bonus payments, regardless of when you earned them.
• Declare allowances your employer reports on your income statement or payment summary.
• Declare compensation and insurance payments that replace wages, such as income protection benefits.
• Reimbursements aren't income and aren't declared.
• Managerial and on-call allowances are taxable but don't create a deduction.
• Motor vehicle allowances, expense allowances and special skills allowances (like first aid) can support a deduction where you actually incur the cost.
• Travel and overtime meal allowances shown only on your payslip need only be declared if you're claiming a deduction.
• Your deduction is based on what you spent, not on the allowance amount.
Deductions you can claim
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Membership of the Australian Medical Association or other medical associations is deductible; your income statement can prove the amount.
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Renewal fees needed to keep working in your profession are deductible, though the initial certificate is not.
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Premiums relating to your work activities are deductible unless your employer pays them.
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Technical journals and reference books directly relevant to your duties can be claimed outright at $300 or less, or as decline in value over the effective life for dearer items and sets.
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Items such as stethoscopes and scales are deductible — immediately if $300 or less, otherwise over their effective life — along with insurance for that equipment.
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Other work equipment follows the same $300 rule, apportioned for private use, and repairs to work equipment are deductible.
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Scrubs, lab coats and enclosed non-slip shoes with genuine protective features are deductible.
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Uniforms your employer strictly enforces, or registered non-compulsory uniforms, can be claimed.
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Claim $1 a load for work-only washing or 50c for mixed loads, plus actual repair and dry-cleaning costs.
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Safety glasses, face shields, masks and sanitiser used to protect you at work are deductible, as is cleaning, repairing or replacing them.
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Claim driving between two separate jobs on the same day, between your consulting rooms and a hospital, or from home to a hospital that isn't your regular workplace.
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Deductible on work-related travel, but not at or near your regular workplace.
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Claim the work-related portion of your own phone and internet costs; totals of $50 or less need no records.
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Deductible if you're the designated first aid person and your employer doesn't pay for the course.
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Claim a meal bought and eaten on overtime where you receive an overtime meal allowance under an award, shown separately and declared as income.
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Course fees, student fees, textbooks, journals, stationery and study assets are deductible where the study maintains or improves skills for your current role or is likely to increase your current income.
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Registration and fares for work-related events are deductible, plus accommodation and meals when you must stay away overnight.
Deductions you can’t claim
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Normal trips to your regular workplace are private, even for long distances or out-of-hours shifts.
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The first cost of obtaining your practising certificate relates to starting work, so it isn't deductible.
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Ordinary business attire and items like a plain white lab coat worn across many professions aren't deductible, even if required at work.
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You can't claim clothing, protective items, equipment, courses or indemnity insurance your employer buys or reimburses.
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Ordinary corrective eyewear is private, unlike protective eyewear.
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Hairdressing, cosmetics and hair or skin care products are private, even with a grooming allowance.
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Work meals, gala nights, concerts and similar events aren't deductible, even if compulsory, and neither is travel to them.
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Food and drink during your normal shift is private, even if you receive a meal allowance.
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Getting or renewing your licence is private, even where your job requires it.
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Parking and speeding fines can't be claimed, including one received outside the hospital where you work.
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Child care while you work and your children's education costs are private.
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Moving to a new work location isn't deductible
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Repayments on HELP, VSL, AASL, SFSS and similar loans, and HECS-HELP fees, aren't deductible.
Records to keep
• Keep written evidence — usually a receipt showing the supplier, amount, what you bought, and the purchase and document dates.
• Written evidence is needed for all claims if your total work-related claims exceed $300.
• Apportion any expense used for both work and private purposes.
• Car claims need a valid logbook and evidence of expenses, or records showing how you worked out your work kilometres.
• Laundry claims of $150 or less don't need receipts, but you must show your calculation.
• Phone, data and internet claims over $50 need bills and evidence of work use.
• Overtime meal claims above the reasonable amount need receipts; in all cases show what you spent and how you calculated it.
• Prepaid subscriptions covering more than one year are claimed proportionately across the subscription period.
• The myDeductions tool in the ATO app can track expenses and trips and be shared with a tax agent.
Where this comes from Australian Taxation Office, “Bus drivers”, ato.gov.au (last updated 11 May 2026). Source: https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/guides-for-occupations-and-industries/a-d/doctor-specialist-and-other-medical-professionals-income-and-work-related-deductions Summarised in plain English by Balanced Books For You. Based on Australian Taxation Office material licensed under a Creative Commons Attribution licence. Balanced Books For You is not the ATO and this document is not an ATO publication.
Prepared by Balanced Books For You from the ATO guide for Doctor, specialist or medical professionals. General information only — it does not take your circumstances into account. Talk to us before you lodge if anything here is unclear.