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 excellent 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, we will help you relocate to Australia initially on a Temporary Skilled Shortage Visa (TSS 482). You will be classed as an Australian resident for tax purposes.
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 apply for a tax file number, also known as TFN. The Australian financial 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, generally you won’t pay tax on any foreign income. Find out more
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.
We will help you get set up with all the relevant paperwork when you arrive.
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.
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