Showing posts with label accountants for doctors Melbourne. Show all posts

Superannuation: Swelling Over Time

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Superannuation or simply "super" is Australia's version of America's 401(k). One of the many differences, however, is that the super rate increases over time. According to the Australian Securities & Investments Commission, the rate is expected to increase from 9.25 percent at present to 12 percent by the year 2019.

Is this increase a bad thing? Hardly, because the "super" fund shows just how serious the government is about retirement benefits. The rate may be increasing, but the increase in contributions allows professionals such as doctors to retire early. Employers, in turn, are obliged to contribute the correct amount to their workers' super funds. Workers themselves can, however, choose to contribute to the fund.

Super contributions can continue up to age 70, but workers can withdraw from their Supers as early as age 55 to 60. This is possible by creating a "transition to retirement" (TTR) account. Designed for people planning on working beyond the preservation age of 55, a TTR can allow them to withdraw up to 10 percent of their super savings without tax infractions.

The math may appear simple, but superannuation is just the tip of the tax iceberg. There are other taxes that must be accounted for to mitigate confusion. 

Superannuation Tax Minimisation Strategies

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Contributing to superannuation in order to claim deductions on income tax is one of the most effective ways that doctors can slash their tax liability. Using a practice called salary sacrificing, doctors can contribute to the super using pre-tax income. This allows them to claim a deduction on their taxes and attract a 15 per cent rate, a significant reduction from their marginal tax rate of up to 46.5 per cent.

Doctors should be wary about contributing too much to superannuation, however. Concessional contributions, or contributions made before tax, are capped at a limit predetermined for each year by the Australian Taxation Office. When going above this limit, doctors may be charged an excess concessional contributions charge that would add a further 5.6 or 5.8 per cent to their tax liabilities.

Upon reaching the age of 60, doctors also have another superannuation tax minimisation strategy at their disposal: transition to retirement. This allows them to withdraw up to 10 per cent of their super account balance each year. This pension, which is tax-free, can then be used as an additional source of income.


When dealing with superannuation tax minimisation strategies, doctors should work with experienced accountants to ensure that these are correctly put into place. This will help them avoid any problems that they might otherwise be unaware of, as well as keep their tax minimisation efforts on track with the latest changes to caps and excess concessional contribution charges released by the ATO.

An Accountant’s Role in Business Industries

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In a nutshell, an accountant’s job is to maintain and inspects his clients’ finances, and while most of the time those clients range from small businesses to huge corporations, even individuals (particularly those with a vast array of assets) may need the help of an accountant too. Basically, anyone who’s conscious about their wealth could benefit from the services of a dependable accountant.

Multiple Industries

Just about any industry can take advantage of accounting services. Take the medical profession for example. If you own a hospital or even a medical office, then you’d surely understand how even doctors need accountants to help with everything from managing business taxes to facilitating payment from your patients. This is of course because, in essence, medical services, like all fields of practice, also cannot thrive without an efficient flow of incoming and outgoing financial resources.

Publicly Traded Companies

Another benefit of having accountants on hand is for publicly traded companies. These public companies are limited (Ltd.) liability companies that offer its stocks/shares, bonds, and securities for acquisition by members of the general public, so just about anybody can buy a portion of these firms. Typically, such companies are required by local law to hire reputable accountants to conduct external audits.


Importance of Accountants for Melbourne Doctors

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While doctors play a very important role in preserving and improving public health, the reality is that they can’t sustain themselves without money. Even then, money brings with it a number of challenges, like budgeting expenditures and following tax regulations, which doctors may be hard-pressed to handle on their own. What they need are experienced and reliable accountants who can handle the financial aspects of medical practices for them.

Medical accountants do more than just count money; they are also responsible for obtaining a suitable insurance policy for the office in order to protect the doctor, his staff, equipment and workplace from harm, theft and other unforeseen events. Accountants also have the responsibility of calculating the costs of rather expensive procedures such as bypass surgeries, especially if they have to be outsourced to a separate, more-specialized medical facility.

Perhaps, more importantly, accountants formulate a suitable financial strategy that the medical office can use to maximize profits and keep operating costs low, without sacrificing the quality of service they provide. This involves determining the proper overhead, or operating costs, that the office should adopt. A fixed overhead allows for greater control of expenses, while a variable overhead allows greater flexibility in providing multiple services.    

Working out your potential expat tax deductions

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Any way you put it, Australia’s one of the best countries in terms of quality of life and career opportunities. If you’re a qualified medical or allied health professional, for instance, your job prospects Down Under can be very good indeed.

Although the government is working to increase the number of locally trained doctors, nothing replaces the value of an experienced practitioner with a wealth of knowledge to share. Meanwhile, working the rounds in a reputable healthcare facility in ‘Straya may open you up to a raft of incentives for certain types of fully documented expenses incurred during official hours.

One way to reap deductions is to invest in your skills. The government allows deductions of up to $250 if your education is related to your line of work or you were granted a taxable-bonded scholarship. Your work uniforms are also key to tax minimisation as incentives are issued for acquiring fresh uniforms and having them cleaned.

Deductions for vehicle and travel expenses are also possible provided these were incurred during work hours; general physicians making house calls or shuffling between hospitals are good examples. Meanwhile, if you wish to donate to charity, you can only reap the deductions if the beneficiary is recognised as a deductible gift recipient. Your taxation specialist can also educate you on the Living Away From Home Allowance.


Learning the incentives due an expatriate professional will enrich your working experience in Australia. All the government asks is a full accounting of each and every expense.

How Accountants Help in the Medical Industry

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Medical science is an ever-expanding field – as diseases develop, become more virulent or mutate over time, doctors and medical researchers rush to develop means of protecting humans from their growing threat. Here are some reasons why having an efficient accountant could greatly benefit a doctor in this pursuit:

For one, scientists are looking into developing bionic devices to help treat Parkinson's disease and epilepsy, among other conditions that involve tremors. Some are even working on a “bionic spinal cord” that aim to provide paraplegics with robotic arms, which they can control. Indeed, this is just one of the many developments that the medical industry is counting on.

Even if a number of the studies are expected to be completed within the decade, none of the treatments, vaccines, and technologies can be expected to be available in the near future for all medical facilities and hospitals, much less private practices. Nonetheless, having all these cutting-edge resources should not remain a pipe dream for both patients and medical practitioners alike.

While many of the heralded advancements remain in the hands of researchers, medical practitioners might want to formulate plans on how they can eventually acquire and offer these new treatments. Forward-thinking accountants for doctors might be able to help them in this regard. These professionals can help medical practitioners implement financial strategies, manage their incomes, and maximise tax refunds so they can build a fund for future investments that will support their practice and better serve their patients. 

Proper Financial Advice for Your Practice

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As a medical professional in Melbourne, you are bound to have plenty of other concerns outside of your practice. Providing exceptional health care comes with an array of contributions along with record keeping, client and health card billing, expenses, and bookkeeping. Minding all these complex details will only add to your already busy workload, so it’s best to get the support of an expert.

Medical accountants can offer guidance beyond that of the usual taxation and accounting. More than just reducing your tax burden, an accountant can assist you in streamlining operations and practice management. If you’re planning to expand your practice, a practice accountant can help determine the best loans and financing options.

With a sound financial strategy, you can realize opportunities for enhancing your medical wealth. An accountant can offer sound advice for investments for both short and long-term goals. Being exposed to inherent risks unique to your medical practice, you need the advice of a professional that knows the ins and outs of insurance policies. 


Medical accountants who are fully focused on medical practitioners and their families have updated strategies and extensive experience in the field that will surely steer your practice in the right direction. You can have effective solutions to tax or accounting difficulties and a financial methodology customized to your needs. 

Financial and Debt Management Guide for Doctors

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Even medical practitioners or doctors need proper guidance on financial planning and debt management. After all, only certified accountants specialize in those equally intricate fields. No matter how well compensated some doctors are, they are also likely to deal with questionable income tax reports and mounting debts when they don’t implement sound financial strategies.

Many doctors, particularly new medical practitioners, aren’t as knowledgeable when it comes to appropriate debt structure and tax deductibles. Some physicians don’t even bother about income and asset protection, investment or retirement planning, and other crucial financial management options. As a result, they had to confront with costly issues and some legal matters that jeopardize their medical wealth.

When it comes to securing financial future, doctors may also need to consult with professionals on the field of medical accounting. A credible accounting firm focusing on the provision of solutions for medical practitioners will help any doctor solve his tax, debt, or any other accounting concerns. This is imperative for physicians in need of financing options, and planning or strategic advice for estate investments and insurance for family members.


Proper debt and wealth management like controlled spending and saving must be exercised regardless of how substantial the doctor’s salary package is. Knowledge on medical accounting and taxation is also beneficial, but it’s inevitable that busy doctors don’t have the luxury of time for these matters. Hence, entrusting accounting concerns for applicable financial management programs to a trusted and proven experienced firm is the best option to consider.

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