A Practical Guide to What You Can and Can’t Claim

Tax time can feel confusing, particularly if you’re new to working in Australia or adjusting to a different healthcare system. The rules around what you can and can’t claim aren’t always straightforward, and it’s easy to second guess yourself when lodging a return.

The good news is that many doctors are entitled to claim legitimate work-related expenses, as long as they meet the Australian Tax Office’s criteria and are properly recorded.

Below is a practical overview to help you understand what is generally claimable, what isn’t, and how to avoid common pitfalls.

The Basic Rule: What Makes an Expense Claimable?

In general, a work-related expense must meet all three of the following conditions:

• It is directly related to your work

• It has not been reimbursed by your employer

• You have records (such as receipts or bank statements)

If an expense doesn’t meet all three, it usually can’t be claimed.

Common Expenses Doctors Can Often Claim

Working From Home

If you work from home, for example, completing clinical notes, administrative tasks, or telehealth, you may be able to claim a portion of your home running costs. The ATO allows two main methods for this. One is the fixed rate method, currently set at 70 cents per hour, which requires records of the hours you’ve worked from home. The other is the actual cost method, where you claim the work-related portion of expenses you’ve incurred.

Depending on the method used, claimable expenses may include things like the depreciation of home office furniture or electronic devices, electricity and gas used for lighting, heating or cooling, work-related phone and internet costs, stationery and computer consumables, and cleaning costs for a dedicated home office.

Education and Professional Development

Education and training costs are generally claimable if they relate directly to your current role and help you maintain or improve the skills you already use at work. This can include courses, seminars, conferences, and workshops that are relevant to your day-to-day practice.

However, you can’t usually claim study that helps you move into a new role, change careers, or gain a promotion. The key test is whether the education supports your current duties, rather than helping you transition into something new.

Motor Vehicle and Work-Related Travel

Travel that forms part of your work, such as visiting other clinics, hospitals, or attending meetings away from your usual workplace, may be deductible. If you use your own vehicle, you can either claim a set rate per kilometre (currently 88 cents per kilometre, up to 5,000km per year) or use the logbook method to claim actual running costs.

In addition, parking fees, tolls, and public transport used for work-related travel may also be deductible.

If your role requires you to stay away from home overnight, you may be able to claim accommodation, meals, and incidental expenses, provided your employer hasn’t already reimbursed you. In some cases, the ATO’s reasonable travel allowance limits apply, which can reduce the need for detailed receipts.

Work Related Clothing

Certain types of clothing can be claimed if they are directly related to your role. This typically includes uniforms with a business logo, as well as protective items such as safety equipment, sunglasses, or sunscreen. Laundry costs associated with maintaining these items may also be deductible.

Professional Fees and Memberships

Doctors can usually claim professional expenses that are directly tied to their current role. This may include medical registration and licence renewals, professional memberships or subscriptions, and union fees where applicable. As with all deductions, these costs must not have been reimbursed by your employer.

What You Can’t Claim

Some expenses often cause confusion but aren’t deductible under ATO rules.

Commuting

Travel between your home and your usual place of work is considered a private expense, even if the commute is long, you work part-time, or you only attend the workplace occasionally. The main exception is if you’re required to carry bulky equipment that can’t be stored securely at work.

Everyday Clothing

Everyday clothing isn’t claimable, even if you only wear it at work. This includes business suits, plain scrubs, and standard clothing worn by healthcare or retail staff. Unless the clothing is a uniform or protective item, it’s considered a private expense.

Personal Expenses

Personal costs such as hair and grooming, childcare, and private medical expenses aren’t deductible, even if they feel indirectly related to your ability to work.

Record Keeping: Make Life Easier Later

Keeping good records throughout the year can make tax time far less stressful. This includes holding onto receipts or invoices, maintaining a logbook for work-related vehicle use, and keeping diaries, rosters, or timesheets to support work-from-home claims. Digital tools such as the ATO’s MyDeductions app or receipt-tracking apps can help keep everything organised.

For official and up-to-date guidance, it’s always best to check the Australian Taxation Office website.

Common Tax-Time Mistakes to Avoid

One common mistake is not claiming what you’re entitled to. If an expense is genuinely work-related and you have the evidence, it’s reasonable to include it. A registered tax agent can help if you’re unsure.

Another issue is over-claiming or exaggerating deductions. The ATO compares claims across similar professions, and unusual claims may be flagged. Incorrect claims can result in repayments, interest, or penalties.

Finally, don’t rely entirely on pre-filled ATO data. Information isn’t always complete, particularly if you lodge early. Always review income and details carefully before submitting your return.

Further Reading

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