From Surgery to Savings: Smart Tax Strategies for Surgeons

Surgeons and Tax: Unique Challenges and Opportunities

Surgeons in Australia operate in one of the most financially complex and high-stakes professions. With substantial income, regulatory scrutiny from the ATO, and industry-specific deductions, proactive tax planning isn’t optional—it’s essential.

What Every Surgeon in Australia Should Know

From allowable deductions to structuring income and preparing for retirement, this guide breaks down how surgeons can legally minimise tax while securing long-term financial health.

1. Deductible Work-Related Expenses for Surgeons

Surgeons may be able to claim:

• Surgical tools and protective gear used exclusively for work

• Professional development like conferences, RACS training, and medical seminars

• Travel between unrelated workplaces or to CPD events

  
  

  Reminder: Home-to-work travel is not deductible. Keep detailed logs and receipts for all deductible expenses.

  
  

2. Claiming Insurance Premiums

• Income Protection Insurance - Deductible if it covers loss of income

• Medical Indemnity Insurance - Fully deductible

  
  

  Premiums that include life, trauma or TPD are not fully deductible. Only the income protection component can be claimed.

  
  

3. Home Office & Telehealth Deductions

Many surgeons now work partially from home. You may be eligible to claim:

• A share of home internet and electricity

• Depreciation on work-related equipment

• Work-related phone and data usage

Use either:

• Fixed rate (2025): $0.67/hour (covers electricity, phone, internet)

• Actual cost method: With accurate logs and receipts

4. Choosing the Right Structure

Your business structure directly impacts your tax position:

• Sole Trader: Easy to set up, taxed at individual marginal rates

• Partnership: Common in shared practices; requires a written agreement

• Company: Potential for 25% tax rate (base rate entity rules apply)

• Service Entity/Medical Trust: Used for income splitting and asset protection

  
  

  ATO Warning: Income from personal exertion must be reported personally. Improper income splitting through trusts will attract scrutiny. PSI (Personal Services Income) rules may also apply.

5. Superannuation Strategies (2025)

Super remains one of the most effective tax shelters for high-income earners:

• Concessional Cap: $30,000/year (taxed at 15%)

• Carry-forward: Use unused cap amounts from prior 5 years (if super < $500K)

• Non-Concessional Cap: $120,000/year, or $360,000 under bring-forward

  
  

  Division 293 Tax: If your income exceeds $250K, an additional 15% tax applies to concessional contributions.

6. Self-Managed Super Funds (SMSFs)

SMSFs provide greater control but come with compliance obligations:

• Investment flexibility

• Tailored estate planning

• Retirement tax benefits

  
  

  Must meet ATO compliance rules including trustee duties, audits, and annual returns.

7. Prepaying Expenses Before 30 June

Get ahead of tax time with strategic prepayments:

• Memberships (RACS, AMA)

• Income protection premiums

• Interest on deductible investment loans

  
  

  Smart EOFY tactic to reduce taxable income at high marginal rates

8. Investing with Tax Efficiency

• Negatively geared property – May offer deductions

• Franking credits – Offset tax via fully franked dividends

• Practice investments – Depreciate medical equipment or claim outright

  
  

  PSI rules may limit your ability to deduct investment losses.

Why Surgeons Need Tailored Tax Planning

Surgeons face higher audit risk, complex financial needs, and unique tax opportunities. Strategic planning helps you:

• Remain compliant

• Maximise allowable deductions

• Protect wealth and prepare for retirement

Partner with Dolman Bateman

We specialise in medical professional tax strategies. Whether you're operating solo, within a partnership, or across multiple hospitals, we tailor your tax plan to fit your personal and professional goals.

📞 Need expert tax advice? Let’s talk.

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Disclaimer: The information provided in this article is general in nature and does not constitute personal financial, legal or tax advice. While every effort has been made to ensure the accuracy of this content at the time of publication, tax laws and regulations may change, and individual circumstances vary. Dolman Bateman accepts no responsibility or liability for any loss or damage incurred as a result of acting on or relying upon any of the information contained herein. You should seek professional advice tailored to your specific situation before making any financial or tax decisions.