Review your practice expense cover in time for a tax deduction

Jun 16, 2017

Like everyone else, doctors are subject to illness and injury. Should this result in you not being able to work and generate an income, how will you meet your practice’s expenses?

These can be significant and are essential to the continued operation of the practice. They include:




  • salaries and associated costs of non-income producing employees,
  • lease, loan and rent expenses,
  • utilities including electricity, telephone and internet etc.,
  • locum costs,
  • business loan repayments,
  • accounting fees,
  • professional indemnity premiums,
  • professional body fees and subscriptions.

Practice/business expense cover provides reimbursement towards your share of eligible practice expenses. For self-employed doctors or business partners, pre-paying your practice expense cover annual premiums before 30 June will allow you to claim a tax deduction upfront, and therefore reduce your income tax payable this financial year. Paying upfront can further save you money as many practice expense policies charge more to spread payments over the year, some up to 8%. As a doctor, making this easy alteration to your policy could save you thousands of dollars every year.

Why not review your income protection policy at the same time?

Similar to practice expense cover, you can opt to pre-pay your income protection premiums annually and receive the same tax benefits and potentially reduce the premium you pay.

The end of the financial year is the perfect time to review your risk insurance portfolio. If you haven’t reviewed your cover recently, your practice expense and/or income protection benefits may not reflect your share of business expenses or level of income. Why not make the adjustment now? Pre-pay annually, save on your premiums and claim a tax deduction for the current financial year.

To find out more about practice expense cover and end of financial year insurance strategies, call Avant Mutual Financial Services* on 1800 128 268.

*Avant Mutual Financial Services is a registered business name of Doctors Financial Services Pty Ltd ABN 56 610 510 328 AFSL 487758 (DFS). The information provided here is general advice only and has been prepared without taking into account your objectives, financial situation and needs. You should consider these, having regarding to the appropriateness of this advice and the policy wording and/or PDS for the relevant product (which are available by contacting us on 1800 128 268 or at avantlife@avant.org.au) before deciding to purchase or continuing to hold a policy with us.

 

Share your view

We welcome your feedback on this article – email the Editor at: editor@avant.org.au