Author: Alan Maddick date: 30/03/2017
Growing up with both parents medical professionals it was quite natural that my first clients all worked in professional and medical services so I have worked in this area since starting my first practice. Back then in the early 2000s we have some nice guidance around PSI and medical practices released primarily to assist with the implementation of GST. Unfortunately this guidance has since been removed from the ATO website however I have chosen to continue to apply this guidance which is common sense and based on normal commercial principals and the law of PSI as it applies to every business except doctors…
Based on this guidance I believe that most GPs and Medical professionals can pay only 30% tax through proper tax planning, recently this position has been re-enforced by surveillance and involvement from the ATO in the medical industry. This is contrary to the old rulings written by the AMA way back when medical practice was first deregulated. Please understand that this area of law is complex and there is a wide variation between what the law appears to say and the way the majority of businesses and individuals in the medical field are applying the law. (not to mention how the courts are interpreting the law in practice)
Are you paying more than 30% tax? If by choice then that is ok but if you have been told you “need to pay” such a high level of tax or “GPs can not split their income” or “cannot form a company” or other similar advice I would love the opportunity to sit down and discuss your financial affairs and do some proper tax planning for your Medical Practice (even if you are a sole GP or other profession we can save you tax). It is not uncommon for me to be able to identify $10,000-$30,000 in tax savings through proper Tax Planning for Medical Practices and individual practitioners.