If you’re considering applying for GP jobs in Australia, you’ll certainly need to think about the financial aspects of moving to Australia. You might want to think about the cost of living in Australia as well as the Australian tax system and how it affects your take-home pay. If you own property in the UK and plan to keep it, you might also want to know how Australia taxes any income earned for overseas properties.

Average GP Salary Australia

Average GP salaries in Australia are relatively good with most GPs earning between AUS $250,000 to $400,000. Our GPs have a higher wage in Australia than they did in the UK.

GPs in Australia often earn a percentage of the billings rather than a fixed salary. This takes into account the number of patients they see, the complexity of the consultations and the number of hours worked. Our GPs have found that this payment system gives them more control over their take-home pay.

Paying Tax as a British GP Working in Australia

As a general practitioner, you can move to Australia on either a temporary or permanent work visa since medical occupations currently qualify under the long-term strategic skill list. Your visa and how long you intend to stay will impact whether you are an Australian resident for tax purposes. The vast majority of our GPs relocate on a Temporary Skilled Shortage Visa (TSS 482) and would be classed as an Australian resident for tax.

Australian residents must declare any income earned from anywhere in the world. However, can also take advantage of Australia’s tax-free threshold and tax offsets. Australian residents also typically receive a lower tax rate than foreign residents.

Australia’s Tax System: How to Pay Tax

Before you begin working as a GP in Australia, you’ll need to get a tax file number, also known as TFN. The Australian income year ends on June 30th and most people will need to file an annual tax return prior to this date. You’ll primarily be taxed on income and the amount you pay will depend on whether you’re an Australian or foreign resident.

Paying Tax in Australia as an Australian resident

Australia residents are entitled to claim a tax-free threshold of AUS$18,200 per year. This means you’ll only be taxed on income over the minimum threshold. You’ll also need to pay the Medicare levy, roughly 2% of your income, which helps support the country’s healthcare. In general, Australian residents using a TFN typically pay lower tax rates than foreign residents.

If you’re an Australian resident but only have a temporary resident visa, most of your foreign income won’t be taxed while you’re living in Australia. However, Australia does collect tax on work you complete overseas, for example, hosting an overseas conference, while living in Australia. More information about foreign income exemptions for temporary residents is available here.

Australian Tax System: Paying Tax on Overseas Property

Sometimes when our GPs move to Australia, they still own property in the UK. If you rent or sell this property and are classed as an Australian resident, you’ll probably need to pay tax. Any income or capital gains from the overseas property must be declared in your Australian tax return. You may be able to claim a foreign income tax offset if you’ve already paid tax on income or capital gains in another country.

Australia’s Tax System: Overseas Pensions & Annuities

As an Australian resident, you’ll also need to pay tax on any UK pensions in payment or annuities. In some cases, you can choose to deduct and have some of your annual pension or annuity income personal contributions returned to you (also known as undeducted purchase price). If your pension or annuity has been taxed in the UK and Australia, you might be able to claim a foreign income tax offset on your Australian tax returns.

More information is available here.

Paying Tax in Australia on Offshore Bank Accounts

If you decide to keep your UK bank account, you’ll need to report any interest or other income earned in your Australian tax income. Failing to declare this information could lead to financial penalties.

Working as a GP in Australia

Once you’ve secured a work visa and arrived in Australia, you need to apply for a TFN and complete a tax file number declaration. 

You must provide the declaration to your employer within 28 days of starting your GP job or you’ll need to pay the higher tax rate. After completing this initial paperwork, your employer will deduct taxes and submit them to the government.

Returning to the UK

While most of our GPs choose to make Australia their home for life, some decide to return to the UK. When you leave Australia, you’ll still need to submit a tax return. If you’re departing before the end of the tax year and don’t plan to return, you can lodge an Australian tax return early.

Ready to Move to Australia?

View our excellent GP job vacancies located throughout Australia or speak to one of our specialist recruitment professionals. Transition Medical is here to support you throughout every stage of your move from finding outstanding opportunities, securing Australian work visas and getting settled in your new home. Read our testimonies to learn about other GPs that we’ve helped make the move.

Other Relevant Blogs

• Changes to the permanent residency visa for GPs
• Which services Transition Medical provide
• GP Salary Australia
• Top 10 Tips for GPs relocating to Australia

GP Visa Temporary and Permanent Residency Visa Options Explained

An important question and consideration when you’re planning to move abroad is which visa to apply for and if you are planning a permanent move, which PR option is right for you.

Our immigration advisers have put together some information below to help guide you. Please do get in touch to discuss your specific circumstances.

What are my GP Visa options?

As a General Practitioner (GP) you are eligible to move to Australia on either a temporary visa or on a permanent basis as your occupation is currently on the Long-term Strategic Skills List (MLTSSL). Common to all pathways is the requirement that applicants meet the Skill, Health and Character requirements. In the case of GPs, the Skill requirement is evidenced by successful registration with the Australian Health Practitioner Regulation Agency (AHPRA). To be able to hold AHPRA registration, you first need to have signed an agreement with a practice in Australia.

Permanent Residency Applications

There are several visa pathways to achieving the objective of Permanent Residency (PR). In this short article, we’ll be explaining the pathways in a straightforward way to help you choose the most appropriate option.

In simple terms, there are 3 primary pathways to Permanent Residency which we’ll discuss today. The Skilled Independent visa (sub class 189) which is a points-tested stream and two Employer Sponsored pathways to PR are the Transitional Pathway (Sub class 482 and then 186) and the Direct Entry pathway (186).

The Transitional Pathway (482 Visa leading to 186 Visa)

All of our employers in Australia prefer to employ GPs on a temporary visa initially (482). This visa can be granted for up to 4 years before a second 482 visa is applied for, making a total stay in Australia of 8 years possible. See our blog post here for more information on this visa.

From a practical perspective GPs can enter Australia much faster by applying for the 482, rather than by applying from the UK for the permanent visa (186). At the time of writing, the average processing time for the 482 visa is 48-57 days while the 186 visa takes 13-19 months.

Under the 482-visa regime, as a GP you can either be employed on a full-time employment contract or you can be an independent sub-contractor and provide your services to the employer on an hourly / weekly pay rate or profit share arrangement. The majority of the positions we advertise fall under the latter.

The 482 visa provides temporary residency status. As the holder of a 482 visa you are free to travel to / from Australia, your family can accompany you and your spouse is free to work or study without restriction. If you are a UK passport holder you will be entitled to Medicare health services once enrolled. Until this time when you arrive in Australia, you will need to hold Private health cover. Most states prescribe that the children of 482 visa holders cannot access free public education so there is a moderate fee to pay on an annual basis.

Temporary Transition Stream

Having worked as a GP for the same employer for three out of the four previous years, you will be eligible to apply for the 186 visa and gain PR.

Generally speaking applicants for the 186 visa must be under the age of 45 at the time of application, however there are a couple of exemptions which can apply to GPs to allow for applications at the age of 45+.

• Firstly, if you have worked in Regional Australia for at least 2 of the 3 -year qualifying period.
• Secondly, if you earn over the Fair Work High Income Threshold (currently $145,000 per annum).

To then apply for the 186, you will need the support of your employer. You will be able to apply for PR at this time even if you have worked for the same employer as an independent sub- contractor.

Direct Entry Pathway (186 Visa only)

If you are employed under a full-time employment contract and are not an independent sub-contractor, it is possible to apply for PR without waiting for the passage of three years. This can be done under the 186 Direct Entry pathway. Many of our practices offer the option of this sponsorship to allow you to apply for PR as soon as you arrive.

Skilled Independent visa (subclass 189)

This is a points-based option for skilled workers. For this application, you need to submit an expression of interest. The eligibility criteria area; you must have a relevant occupation and complete a suitable skills assessment for this. The Skill requirement will again be evidenced by successful registration with the Australian Health Practitioner Regulation Agency (AHPRA).

You will be required to meet the points test pass mark of 65 and be under 45 years old at the time you are invited to apply.

Further Reading:

PR 189 Skilled Independent Visa

PR 186 Employer Sponsored Visa

For further information or to discuss your circumstances directly please get in touch with one of the team here at Transition Medical. Richard, our Specialist Immigration Advisor and Lawyer is on hand to help.

Further Reading on our blog

Australian Education system

Find out more about working as a GP in Australia

Benefits of working as a GP in Australia

We are often asked ‘How much do GPs earn in Australia?’

You may be thinking about relocating to Australia and want to know more about your GP salary in Australia. We discuss General Practitioner salaries and give you some guidance on what you can expect.

GPs in Australia generally earn a good income and can afford a comfortable lifestyle. In the majority of cases, GPs relocating from the UK earn at least the same for doing less hours per week. One of our doctors has described working in Australia

‘I have found the working conditions, flexibility, capacity for earning and, above all, lifestyle for my family and I to be far superior to my experience in the UK’

Australia GP Income

Rather than being paid a fixed salary, as a GP you will earn a percentage of billings.  The income you receive will very much depend on the number of patients you see but also upon the complexity of the consultations.

Factors which will affect your annual salary

• The percentage of billings you receive
• The number of hours you work
• The number of patients you see
• How many weeks annual leave you take
• The type of patient you are treating ie which Medicare Billing item number you use

General practices in Australia operate as private businesses,either owned by a single GP, GP Partners or larger companies.

Bulk Billing

A bulk billing clinic is one where the practice bills Medicare for the full payment of the patient consultation. The patient presents a Medicare card and is not required to pay towards the consultation.

Medicare is a public health insurance scheme funded by the Australian Government, which provides all Australians, and those with eligible Medicare cards, with access to free or subsidised healthcare.

Almost nine out of 10 visits to the GP in the nine months to March 2021 were provided with no out-of-pocket cost to the patient,’ according to Federal Health Minister, Greg Hunt.

Mixed Billing

This is where the practice accepts bulk billing consultations as above but will also charge patients for consultations. Usually, patients who are under 16, over 65 and hold health cards are bulk billed and everyone else is private billed. The standard consultation fee for the practice will remain the same. Even in a mixed billing practice, most patients will be bulk billed.

Operating as a private business, GPs are free to determine reasonable fees that are reflective of the services they provide.

GP Percentage of Billings

As a GP you will be offered somewhere in the region of 60 – 70% of the total billings you generate for the practice. The private consultation fee for the practice will remain the same however the bulk billing fee will vary dependent on the type of consultation.  A standard bulk billing consultation is currently $39.10AUD however any additional treatment you provide above this is charged as an add on. Minor surgery, dermatology and skin, and health assessments will substantially increase the billings you achieve.

If you are working full time and seeing 4-6 patients per hour you can expect to earn a GP salary of $250K AUD per year. The potential income is really high with some of our GPs easily earning between $300 – $400K AUD and upwards.

It can take 3-6 months to build up your patient base and become fully booked. It may be much quicker but practices offer you a minimum guarantee for the first 2-3 months whilst you build your patient base. This guarantee is usually $100 – $150 per hour.

GPs we’ve placed in Australia find that their income is far higher than what they earn in the UK and have much more control over what they earn.

GP Tax Rate Australia

Working in Australia, you are classed as a resident for tax purposes.

The following rates for 2022 – 2023

Taxable income                      Tax on this income
0 – $18,200                                   Nil
$18,201 – $45,000                      19%
$45,001 – $120,000                    32.5%
$120,001 – $180,000                  37%
$180,001 and over                        45%

Further Reading

GP Tax System in Australia

Is there an Age Limit for GPs?

Useful websites
Medicare
Medicare Benefits Schedule
Australian Tax Office