Medical Professional Tax Deduction Checklist: What Doctors and Healthcare Workers Can Claim in 2026

Working in healthcare comes with significant out-of-pocket expenses, registration fees, specialist equipment, mandatory continuing education, and the complexity of operating across multiple clinics, hospitals, or under a contractor arrangement. The good news is that many of these costs are tax deductible, and this medical professional tax deduction checklist is designed to make sure you don’t miss a single one.

This guide covers everything you need to know about tax deductions in Australia for the 2025-26 financial year: what you can claim tax on, what you cannot, and the record-keeping rules that keep your claims compliant with the ATO. Bookmark it as your go-to tax deductible expenses list every year at tax time.

Medical professional tax situations are often more complex than other occupations, especially for locum doctors, GP contractors, and those working across private and public settings. Our tax consultants regularly assist healthcare workers navigate deduction eligibility and record-keeping requirements, so you never leave money on the table.
 

What Medical Professionals Can Claim on Tax

Who qualifies as a medical professional for tax purposes?

For the purposes of this medical professional tax deduction checklist, “medical professional” covers anyone registered under the Australian Health Practitioner Regulation Agency (AHPRA) or providing allied health services, including:
 

• Doctors (GPs, registrars, hospital doctors)
• Surgeons and specialists (cardiologists, orthopaedic surgeons, radiologists, etc.)
• Dentists and oral health therapists
• Nurses and midwives
• Physiotherapists, occupational therapists and speech pathologists
• Psychologists and mental health practitioners
• Pharmacists
• Optometrists, podiatrists and other allied health professionals
• Locum doctors and healthcare contractors on ABN arrangements

 
The ATO assesses tax deductions based on your individual work circumstances, not just your job title. Whether you are a PAYG employee at a hospital or a sole-trader locum, the same fundamental rules apply: the expense must be directly related to earning your income, you must not have been reimbursed, and you must have records to substantiate the claim tax deduction.
 

Employee vs contractor healthcare workers

Your employment structure has a significant impact on what tax deductions you can claim and how.
  

PAYG Employee (e.g. hospital doctor, salaried GP)	Contractor / Sole Trader (e.g. locum, private practice)
Claims work-related expenses not reimbursed by employer	Claims a broader range of business expenses against ABN income
Standard deduction categories apply	May also claim agency fees, home office as dedicated workspace, a wider share of vehicle and travel expenses
Simpler tax return in most cases	More complex, PSI rules may apply; consider specialist advice
Cannot claim expenses reimbursed by employer	Must separate personal and business use carefully

 

Common Tax Deductions for Doctors and Healthcare Workers

Uniforms, scrubs and protective clothing

One of the most overlooked items on any medical professional tax-deductible expenses list is workwear. You can generally claim the cost of purchasing, repairing, and laundering occupation-specific clothing and protective equipment. This includes:
 

• Scrubs, theatre gowns, and lab coats (if they are distinctive to your occupation or have a protective function)
• Gloves, face masks, goggles, and other personal protective equipment (PPE) 
• Safety footwear required for your role

You cannot claim the cost of conventional clothing, even if you wear it exclusively for work, for example, a plain white shirt worn under a lab coat is generally not deductible.

Laundry: The ATO allows a standard claim of $1 per load if you wash work-related clothing separately, or 50 cents per load when washed with other clothing. Keep a diary record if you claim more than $150 in laundry expenses.
 

Medical equipment and tools

Equipment and tools used directly in your clinical work are deductible. Common examples include:
 

• Stethoscopes, otoscopes, and ophthalmoscopes
• Surgical instruments purchased personally
• Medical reference books, journals, and software subscriptions
• Clinical apps and medical databases (e.g. MIMS, UpToDate, Epocrates)
• Portable diagnostic devices

Where an item costs more than $300, you must depreciate it over its effective life rather than claiming the full cost upfront. The ATO provides depreciation rates for common medical equipment on its website.

Example: A radiologist who purchases a tablet pre-loaded with medical imaging software for $1,200 can claim depreciation over the device's effective life, using the percentage of time it is used for work versus personal use.
 

Phone and internet expenses

If you use your personal mobile or home internet for work purposes, you can claim the work-related portion of the bill. You will need to determine this percentage by keeping a 4-week diary that records your work versus personal use. Common work-related uses for medical professionals include:
 

• Calling patients or referring clinicians
• Accessing clinical apps, databases, and online portals
• Telehealth consultations
• Receiving on-call notifications and referral messages

Your employer may reimburse some or all of these costs, if so, only the out-of-pocket, unreimbursed portion is deductible.
 

Home office expenses

If you perform work duties at home, such as writing clinical notes, reviewing patient records, undertaking telehealth consultations, or completing CPD, you may be able to claim home office expenses. The ATO offers two methods:
 

• Fixed rate method: 70 cents per hour worked from home (as of 2024–25), covering energy, phone, internet, and stationery
• Actual cost method: Claim the actual percentage of running costs attributable to your home office space and work activities

 
You must keep a record of the hours worked from home (e.g. diary, timesheets, or electronic records). Note that the ATO will scrutinise home office claims where the claimant does not have a dedicated workspace, particularly for employees whose main workplace is a hospital or clinic.
 

AHPRA Registration Fees and Professional Memberships

AHPRA registration: can you claim it?

Yes, AHPRA registration fees are tax deductible if you pay them personally and are not reimbursed by your employer. This applies to all healthcare practitioners registered under AHPRA, including doctors, nurses, physiotherapists, psychologists, dentists, pharmacists, and more.

Your annual practising certificate renewal is deductible. The original cost of obtaining your initial registration is generally not deductible, as the ATO considers this a pre-income expense. 

Example: A hospital registrar who pays their AHPRA renewal fee of $900 personally, without reimbursement, can claim the full $900 as a tax deduction.
 

Union fees and industry memberships

You can claim annual fees paid to professional bodies, associations, and unions directly relevant to your work. Deductible memberships commonly claimed by healthcare workers include:
 

• Australian Medical Association (AMA)
• Royal Australian College of General Practitioners (RACGP)
• Royal Australasian College of Surgeons (RACS)
• Australian Physiotherapy Association (APA)
• Australian Nursing and Midwifery Federation (ANMF)
• Australian Psychological Society (APS)
• Pharmaceutical Society of Australia (PSA)

 
Joining fees are generally not deductible, only ongoing annual subscription or membership fees qualify.
 

Medical indemnity insurance

Premiums paid for professional indemnity insurance are deductible where the policy covers your work activities. This is a significant deduction for many medical professionals, particularly those in private practice or operating under a contractor arrangement where employer cover does not apply. If your employer provides and pays for your indemnity cover, you cannot separately claim a deduction.
 

Self-Education, CPD and Conferences

CPD courses and mandatory professional development

Costs associated with Continuing Professional Development (CPD) are deductible when the education directly relates to your current role. This includes:
 

• Compulsory CPD required to maintain your AHPRA registration
• Online modules and eLearning platforms
• Workshop and simulation training
• Postgraduate study in your current speciality area
• First aid training if you are a designated first aid officer

Important distinction: You can claim CPD that maintains or improves your skills in your current role. You cannot claim education that qualifies you for a new or different occupation. For example, a physiotherapist studying medicine to become a doctor cannot claim those university fees as a work-related self-education expense.

Deductible CPD costs include course fees, textbooks, study materials, and the work-related portion of any travel required to attend.
 

Medical seminars and conferences (including overseas)

Conference and seminar attendance is deductible where the content directly relates to your current specialty or clinical practice. You can claim:
 

• Conference registration fees
• Seminar and workshop fees
• Airfares and accommodation for interstate or international conferences
• Meals and incidentals during attendance (subject to ATO guidelines)

If your employer reimburses your conference attendance, you cannot claim the reimbursed amount. If you combine a conference with personal travel, you must apportion the travel costs, claiming only the work-related component.  For airfares to and from a conference (interstate or overseas, for example) if the main purpose of the trip is to attend the conference, and the private activities are incidental, you do not need to apportion the air fares. If the main purpose of the trip is private and the conference, seminar or training course is merely incidental, you can only the direct costs (for example, registration costs). If it is a dual purpose trip, the airfares will need to be apportioned.

Example: A cardiologist who attends a specialist conference in Singapore over four days, with three additional days of personal travel, can claim the conference registration fee and a proportionate share of airfare and accommodation, but not the costs attributable to the personal days.

Work-Related Travel and Vehicle Expenses

Travel between workplaces

If you travel directly between two or more separate workplaces on the same day, without returning home in between, you can claim those travel costs. Common scenarios include:
 

• A GP who works morning sessions at one clinic and afternoon sessions at a second clinic
• A doctor who travels from ward rounds at a hospital to a private rooms consultation
• A physiotherapist who provides home visits between a clinic and patient homes

You cannot claim travel from home to your first workplace, or from your last workplace to home, under ordinary circumstances. This is considered private travel by the ATO.
 

Rural and interstate placements

Healthcare workers who travel for temporary rural, interstate, or remote placements may be able to claim significantly more travel-related costs, including:
 

• Airfares or mileage to the placement location
• Accommodation during the placement
• Meals and incidentals where you are required to stay away from home overnight

Keep full records for all work-related travel, and a travel diary may be required for extended travel, especially where the trip includes private components.

Example: A locum doctor travelling from Brisbane to Dubbo for a two-week placement may be able to claim flights, accommodation costs, and a reasonable meal allowance for the duration of the work-related stay, provided the costs are not reimbursed by the placing agency.
 

Accommodation and meal allowances

Accommodation costs are deductible when you are required to work away from your usual home base overnight. Meals are deductible only when you are required to sleep away from home, not simply when you work late or through a meal period. If you receive a travel or meal allowance from your employer, you can still claim actual costs that exceed the allowance, provided you have substantiation.
 

Tax Deductions for Locum Doctors and Healthcare Contractors

Locum doctors and healthcare contractors operating under an ABN have one of the most complex medical professional tax situations in the profession, and one of the most valuable tax deductions opportunities when managed correctly.
 

ABN income vs PAYG income: what changes?

When you earn income under an ABN as a contractor, you are running a business. This changes the nature and breadth of your deductions. Unlike a PAYG employee, you may be able to claim:
 

• Agency fees paid to the placement agency (if not deducted from your gross payment)
• A home office as a dedicated business space
• A wider range of vehicle and travel costs
• Equipment and technology used in your practice
• Business-related professional fees and subscriptions

 
If you operate across multiple income sources, for example, PAYG shifts at a public hospital combined with ABN locum income, your return becomes more complex. Deductions must be carefully attributed to the correct income stream.
 

Deductions unique to locums and sole traders

Expense	Deductible?	Notes
Agency fees (unreimbursed)	Yes	Where paid personally as part of the placement arrangement
Travel to placement locations	Yes	Including airfares, fuel, mileage, accommodation
Accommodation at placement	Yes	When staying away from home overnight for work
AHPRA registration	Yes	If self-funded and not reimbursed
Medical indemnity insurance	Yes	Where employer cover is not provided
CPD and self-education	Yes	Must relate to current role
Home office (dedicated space)	Possibly	Higher threshold for sole traders; must be principal place of business
Equipment and clinical tools	Yes	Work-related portion; depreciate if over $300
Phone and internet	Partial	Work-related percentage only

 

PSI rules and how they affect contractors

The Personal Services Income (PSI) rules can limit the deductions available to healthcare contractors. If more than 50% of your contractor income is derived from your personal skills and efforts (rather than from the use of business assets, a business structure, or the work of employees or contractors), PSI rules may apply.

Where the PSI rules apply, certain deductions that may otherwise be available to a business are generally not deductible. This includes expenses relating to a residence, such as rent, mortgage interest, council rates, and land tax. Other restrictions may also apply to employee-related and business expenses.

Determining whether the PSI rules apply to your situation can be complex and depends on your individual circumstances. If you operate as a locum or contractor, H&R Block strongly recommends speaking with a tax consultant to assess your position and ensure you are claiming only the deductions you are entitled to.
 

Record keeping for contractors and locums

Strong record keeping is especially important for contractors and locums, as the ATO gives additional scrutiny to complex income arrangements. Keep:
 

• Invoices and contracts from each placing agency
• Bank statements showing payments received
• Receipts for all deductible expenses
• A travel diary for any overnight or multi-location work travel
• Logbook if claiming vehicle expenses using the logbook method
• Records of PAYG and ABN income separately

 

Tax Deductions by Medical Profession

While many deduction categories apply across all healthcare workers, the specific items you can claim vary significantly by role. The sections below highlight the most important occupation-specific considerations.
  

Doctors and GPs

GPs and hospital doctors typically claim AHPRA registration, AMA membership, CPD, clinical equipment, medical indemnity insurance, and travel between clinics or sites. GPs in private practice or working as contractors may also claim a broader range of business expenses.
  

Surgeons and Specialists

Surgeons and medical specialists can claim surgical instruments purchased personally, specialist college fees (e.g. RACS, RACP), conference and overseas training costs, and medical indemnity premiums which are often higher than for other practitioners. Equipment costs may be significant.
  

Nurses and Midwives

Nurses can claim nursing fobs, stethoscopes, scrubs, uniform cleaning, AHPRA registration, ANMF fees, and CPD. Travel between different ward locations or home care sites may also be deductible. For detailed nurse-specific information, see our nurses tax deduction checklist.
 

Dentists

Dentists may claim registration and Dental Board of Australia fees, specialist dental equipment, protective gear, CPD, professional indemnity insurance, and the cost of dental journals and reference materials.
 

Physiotherapists

Physiotherapists can claim APA membership, AHPRA registration, treatment equipment and supplies, CPD, protective clothing, and travel to home visits or off-site clinics. See also allied health tax deductions.
  

Psychologists

Psychologists can claim APS membership, AHPRA registration, supervision fees (where required for registration purposes), professional development, reference books, and a proportion of home office expenses if they conduct telehealth sessions from home.
  

Pharmacists

Pharmacists can claim PSA membership, CPD, protective clothing including lab coats, reference software and databases, and work-related equipment.
  

Radiologists

Radiologists can claim specialist college fees, CPD including international conferences, imaging software subscriptions, and work-related equipment such as workstations used to review and report imaging remotely.
  

Allied Health Professionals

Allied health professionals, including occupational therapists, speech pathologists, dietitians, podiatrists, and exercise physiologists, share many of the same deduction categories: AHPRA or relevant board registration, professional association fees, CPD, clinical tools, and work-related travel.
 

Quick Deduction Check: Medical Professional Tax-Deductible Expenses List

Use these tax-deductible expenses list as a fast reference guide to the most common claim tax scenarios for healthcare workers. For personalised advice on your medical professional tax situation, speak with an H&R Block tax consultant.
 

Expense	Claimable?	Key Conditions
AHPRA registration fees	Yes	Must be self-funded and unreimbursed
Scrubs and PPE	Usually	Must be protective or occupation-specific; not plain clothing
Stethoscope / medical equipment	Yes	Depreciate if cost exceeds $300
Laundry of work clothing	Yes	ATO rates: $1/load (separate) or 50c/load (mixed)
Parking at regular workplace	Usually no	Limited exceptions; check ATO guidelines
Hospital parking (travel between sites)	Possibly	Deductible if travelling between workplaces on same day
CPD courses	Yes	Must relate to your current role
Overseas conference	Yes	Apportion if personal days included; receipts required
Medical indemnity insurance	Yes	If not covered by employer
AMA / specialty college fees	Yes	Annual fees only; not joining fees
Medical textbooks and journals	Yes	Must relate to current clinical role
Phone (work-related portion)	Partial	Requires 4-week usage diary
Internet (work-related portion)	Partial	Work usage percentage must be documented
Home office (while working from home)	Partial	Fixed rate or actual cost method; diary required
Agency fees (locums/contractors)	Yes	If paid personally and not deducted by agency
Travel to locum placement	Yes	Flights, accommodation, and meals (overnight stays)
Sunglasses / sun protection	Possibly	Only where outdoor work duties are a primary function
Overtime meals	Possibly	Only when employer requires overtime and pays an allowance

   

What Medical Professionals Cannot Claim on Their Tax Return

Understanding what falls outside the ATO’s rules is just as important as knowing which tax deductions qualify. The following expenses are not part of a legitimate medical professional tax-deductible expenses list, and are commonly mistakenly claimed by healthcare workers:
 

• Travel from home to your regular workplace (ordinary commuting is not deductible)
• Parking at your regular workplace in most circumstances
• Plain, everyday clothing worn for work, even if you only wear it in a clinical setting
• Meals eaten during normal working hours (unless you receive an allowance for overtime meals)
• Expenses reimbursed by your employer, you can only claim the unreimbursed portion
• Education costs that qualify you for a new or different occupation
• Personal use portion of equipment, phone, or internet expenses
• Self-education costs where the course is not directly related to your current clinical role
• Initial AHPRA or board registration fees when first entering the profession

2026–27 Budget Update: $1,000 Instant Tax Deduction

As part of the 2026 Federal Budget, the Australian Government announced a new $1,000 instant tax deduction available to Australian tax residents who earn income from work. This measure is set to take effect from the 2026–27 income year, meaning it will not apply to tax returns lodged for 2025–26.

For medical professionals, this could mean an automatic $1,000 deduction without the need to substantiate individual work-related expenses up to that threshold. 

If you are preparing your 2025–26 tax return now, the deductions outlined throughout this article remain the applicable framework. The $1,000 instant deduction is one to factor into your planning for the year ahead.
 

Records You Need to Keep Claiming Tax Deductions

The ATO requires taxpayers to keep appropriate records to substantiate their deductions. Generally, if your total work-related expense claims exceed $300, you must have written evidence to support your claims, such as receipts, invoices, or bank statements. Some exceptions apply, including certain laundry expenses and other specific deductions allowed by the ATO.

Key records for medical professionals to keep include:
 

• Receipts for all deductible purchases
• Bank and credit card statements
• Invoices from professional associations and education providers
• AHPRA registration payment confirmation
• Insurance premium schedules
• A travel diary for work-related travel involving overnight stays or multiple locations
• A vehicle logbook (where applicable)
• A 4-week diary to establish your work-use percentage for phone and internet
• Records of hours worked from home (timesheet, calendar, or equivalent)

 
Records must generally be kept for five years from when you lodge your tax return. Digital copies (photos of receipts, scanned invoices, PDF statements) are acceptable.
 

Common Medical Professional Tax Mistakes Healthcare Workers Make

• Claiming the full cost of equipment without depreciating items over $300
• Claiming home-to-work travel as a work-related deduction
• Claiming clothing that does not meet the ATO's requirements (i.e. is not protective or distinctly occupational)
• Forgetting to apportion conference travel costs where personal days were included
• Failing to keep a travel diary for interstate or overseas work-related travel
• Missing AHPRA registration fees, indemnity insurance, and specialist college fees as deductions
• Not separating ABN and PAYG income correctly, leading to incorrect deduction attribution
• Claiming education expenses for study intended to qualify you for a different role
• Claiming reimbursed expenses as though they were out-of-pocket costs

 
Healthcare professionals, particularly locums, contractors, and those with mixed income, often benefit most from professional advice when preparing their medical professional tax return. H&R Block’s tax consultants understand the specific tax deductions and record-keeping requirements of the medical industry.