Tax Deductions for Medicos

JUST WHAT the Doctor ordered — a healthy deduction!

Did you know that Doctors can save thousands of dollars each year by claiming property depreciation? Let’s provide a quick recap on things.

What is depreciation?

As a building gets older and items within it wear out, they consequently depreciate in value.

The Australian Taxation Office allows commercial property owners to claim deductions related to the building, as well as the plant and equipment items contained within the property.

Depreciation can be claimed by the owner of any income producing property and essentially reduces the owner’s taxable income, meaning they pay less tax.

In commercial properties, commercial tenants are also entitled to claim depreciation for any fit-out they install in the property once their lease starts.

If a tenant decides to vacate the property and lease conditions mandate the tenant returns the property to its original condition, they may also be able to claim any remaining depreciable value for removed and scrapped assets within the year of removal.

It is important that both commercial property owners and their tenants consult with a specialist Quantity Surveyor and arrange a tax depreciation schedule.

A specialist Quantity Surveyor will perform a thorough site inspection to take measurements and obtain photographic evidence to ensure both the owners and tenants claims are maximised.

What assets can Doctors claim on?

Below are just some of the depreciable assets Doctors could be claiming deductions for:


Below is a real example of the difference depreciation deductions can make for General Practitioners:Medico-2

Bottom Line: Depreciation will make a significant difference to your underlying cash flow.