Tax Deductions for Doctors: What travel expenses can you claim?

If you are a doctor who travels between multiple hospital sites for work, you may be eligible to claim a tax deduction for some or all of your travel expenses. According to the Australian Tax Office (ATO), for you to be able to claim your travel expenses as a tax deduction, there are four conditions that will need to be met. These are that the travel must be necessary; it must form part of your employment duties; your employer must require you to carry out the travel; and it must be undertaken in work hours.

Basically, what this means is that to claim travel expenses as a tax deduction, you must be travelling between workplaces as part of your role – not just travelling to and from work and home. An example would be if you worked across multiple different hospitals or clinics, which you are required to travel between during work hours as part of your role.

In short, you can claim a tax deduction for work-related travel expenses that relate directly to your ability to earn your income, where you spent the money yourself and weren’t reimbursed by your employer.

Remember, you need to have a receipt to back up your claim. For this, we recommend scanning your receipts in and storing them on your computer or in the cloud, rather than keeping paper receipts (which can fade over time). This will ensure that they remain clear and legible, and are easily accessible should you need them.

Understanding what travel expenses you can claim back as a doctor can be tricky and confusing, which is why it is always best to check with an experienced accountant or tax professional if you are not sure. At Medical Wealth Planning, we are specialists in tax for doctors and other medical professionals. We have a proven track record of helping our clients to maximise their claimable deductions, and minimise their tax return. To find out more about our services and how we can help you with your next tax return, please book an appointment with us.