Tax and Super Strategies for Doctors in Private Practice

Moving into private practice can be a game-changer. You gain greater autonomy, higher earning potential, and often more flexibility in how you work. But it also adds layers of complexity — especially when it comes to tax and superannuation (retirement savings).

Without a strategy, it’s easy to pay more tax than necessary or miss opportunities to secure your future. Here are some smart steps to keep more of what you earn.

Get Clear on Your Income Streams

Doctors rarely have just one income source. You might earn:

• Salary from hospital work.

• Billings from private patients.

• Medicare rebates.

• Locum shifts.

• Consulting or teaching fees.

  
  

Each is taxed differently, and knowing your income mix helps identify where you may be overpaying tax or underutilising deductions.

Make Super Work Harder for You

Superannuation is one of the most tax-effective vehicles for building long-term wealth. Yet many doctors focus on immediate earnings and neglect their super. Strategies include:

• Concessional contributions: up to the annual cap (currently $30,000), which are tax-deductible.

• Non-concessional contributions: using after-tax dollars to grow wealth inside super.

• Catch-up contributions: if you didn’t use your full cap in previous years.

• Consider an SMSF if you want greater control, though this comes with responsibility.

  
  

For high-income earners, even modest extra contributions can save thousands in tax while compounding into significant retirement savings.

Claim What You're Entitled To

Running a practice generates legitimate deductions that can offset taxable income, such as:

• Professional memberships and insurances.

• Continuing medical education and conferences.

• Practice expenses — staff salaries, rent, equipment.

• Motor vehicle and travel costs (where directly work-related).

  
  

Careful record-keeping and timing (for example, prepaying expenses before year-end) can make a meaningful difference.

Choose the Right Business Structure

As income grows, operating as a sole trader often becomes inefficient. Many doctors benefit from moving to a:

• Company, where profits are taxed at a flat rate.

• Trust, which can distribute income to family members (subject to rules).

  
  

Beyond tax efficiency, these structures can also protect personal assets from professional risks.

Plan for the Long Term

Tax planning isn’t just about the current financial year. Building wealth is about creating flexibility — ensuring you can retire on your terms, transition into fewer hours, or even fund children’s education. Super, smart structuring, and clear cash-flow planning are the levers to make this happen.

Key Takeaway

The shift to private practice brings both opportunities and responsibilities. By being proactive with tax and super strategies, you can reduce today’s tax bill and ensure your financial future is secure.

If you have questions about your Financial Planning requirements, please reach out to BFD Financial Planning today for specialist guidance and support. Your financial future deserves careful consideration, and we're here to help you every step of the way.

Contact us today. info@bfdfp.com

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The information contained on this website and in this blog-post is general in nature and does not take into account your personal situation or circumstance. It is recommended that you consider and use the information provided responsibly, and where appropriate, seek professional advice from a financial adviser.

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