New financial year, plan ahead now

Nicole Brown  Partner, Cutcher & Neale

Whether you're a doctor or a practice manager, a little early preparation can go a long way.

For doctors: take the lead early 

• Service fees – These are often one of your biggest expenses and the ATO is paying attention. Make sure your fees are in line with your agreement, paid in full and aligned with the Service Entity Guidelines.
• Make the most of your super – You can contribute up to $30,000 in concessional contributions this financial year (inclusive of employer contributions). Use this time to not only maximise contributions but also review how your super is performing. 
• Update your logbook – If you use your car for work, a current logbook helps you claim fuel, registration, insurance and other running costs up to your business-use percentage.
• ATO payment arrangements – If you have one in place, from 1 July the interest is no longer tax deductible. Consider alternative ways to pay off your debt sooner rather than later to maximise your deductible debt. 
• Prepare your tax return early – If you are planning to buy property, most lenders will want your most recent tax return, so getting it done sooner gives you more flexibility when it comes to timing your loan application.
• Earned income as a sole trader – Using a registered tax agent allows you to defer your tax bill until as late as June 2026.

For practice managers: these tasks are key

• Employee wages and superannuation – Award wages may have increased from 1 July and with the Super Guarantee now at 12%, your accounting software must reflect the correct rates to avoid underpayments or compliance issues.
• Review your budget – Set realistic income and expense expectations for the year ahead. If you haven’t already, use your accounting software to map out a basic budget. This gives you a clear benchmark to track against as the months go on.
• Sub-leased rooms – Now’s a good time to check that any rent reviews or updates have been completed. This helps you stay commercially aligned and avoid undercharging.

Make the most of your tax position

Tax is likely one of your largest outgoings, so it’s well worth taking the time to get things right and maximise your available deductions. If you’re looking to get ahead this year, speak to our medical accounting specialists today. For personalised advice, contact us on 1800 988 522 or visit the website. 

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