Transitioning from being a PAYG employee, such as a registrar, to becoming a consultant and working for yourself as a sole trader (for example, a VMO, or a private practice physician or anaesthetist) or operating a small business (such as owning a practice as a GP, physician or surgeon) can feel daunting in itself. When tax obligations are added to the mix, it can introduce an additional layer of uncertainty.

One of the key differences when working for yourself is that tax is no longer automatically withheld from your income. This means you need to proactively set money aside to ensure you have sufficient funds available when tax obligations are due.

A primary way to manage these obligations is through the lodgement of a Business Activity Statement (BAS). Your BAS reports income and expenses inclusive of GST. Any GST collected from income is payable to the ATO, while GST paid on eligible expenses may be receivable. These amounts are then factored into your overall tax position for the period.

BAS lodgements can be submitted monthly or quarterly:

• Monthly BAS is due on the 21st of the following month
• Quarterly BAS is generally due by the 4th week of the second month, after the quarter ends, when lodged through a registered tax agent

A benefit of being a sole trader or a small business owner, is that you may also be entitled to additional tax deductions that are not available when you are employed directly by an employer (i.e. a hospital). These can include eligible travel expenses, professional subscriptions, and software or services used to manage patient bookings and practice administration.

I understand that being a doctor is an exceptionally demanding profession, often leaving little time and cognitive load to think about tax and compliance. As your tax accountant, I will:

• Help you understand your employment or business structure
• Keep you on track with your tax obligations
• Provide proactive tax planning advice as your income grows
• Ensure your BAS and tax returns are lodged accurately and on time
• Maximise eligible deductions 

I am also available to answer questions as they arise, so you don’t have to navigate these matters alone. This allows you to focus on your patients and move forward with confidence as your income and business continue to grow.

For ongoing support with your tax and compliance obligations, I’m here to help. Get in touch to discuss how I can support you.