Income And Taxation
How much will I earn?
This is going to be calculated based on the number of hours and patients that you may see. It is calculated based on the following criteria:
- You will normally work as a partner within the Practice which is supported by Management and Administrative services
- As a doctor in the practice you will be charged a ‘Services Fee’ based on a percentage of your billings to cover these management and Administrative services
- In this way, you will be in control of your own income level to a certain degree as apposed to a salaried or wage based position. In most practices, this arrangement will allow you the flexibility to work the hours that you wish
Income example
Doctor Average of 30 patients per day
- @ $55 per patient = $1650 per day
- 60% of billings = $990 per day
- If you work 5 days per week, 46 weeks pa
- = $AUD 227, 700.00 pa
- = £126 000 + pounds per annum (based on exchange rate of approximately 55 pence to the dollar)
Taxation
All doctors working as independent contractors in Australia will need to pay tax and will require an Australian Business Number (ABN) and a Tax File Number (TFN). Again our team on the ground will help you to obtain these numbers.
How much tax will you pay?
The amount of tax you pay depends on:
- how much you earn
- whether you have a tax file number and give it to your employer
- whether you are a resident for tax purposes
The Australian Tax year runs from the 1st July to the 30tth June the following year. Everyone who is working in Australia must obtain a TFN Number (Tax File Number) and again we will help you with this.
What is a tax file number?
A tax file number (TFN) is a unique number that is issued to individuals and organisations to help administer tax and other Australian Government systems.
You will only ever be issued with one TFN number, even if you change your circumstances such as your name or residency. You should keep your TFN secure at all times and advise the department if you change your name or address so they can update your details.
How to apply for a TFN
You can apply for a TFN online at www.ato.gov.au. Follow the links on the left hand column- Get a tax file number or update your details. Then click on the link- Migrant or Visitor.
If you are applying on-line and are a Temporary visitor to Australia and with a Visa to work, you will not need to physically provide proof of identity documents.
The following table covers tax thresholds if you are a resident for the full 2008–09 income year and are entitled to the $6,000 tax-free threshold.
| Taxable income | Tax on this income | Effective Tax Rate |
| $0 – $6,000 | Nil | 0% |
| $6,001 – $35,000 | 15c for each $1 over $6,000 | 0% – 12.4% |
| $35,001 – $80,000 | $4,350 plus 30c for each $1 over $35,000 | 12.4% – 22.3% |
| $80,001 – $180,000 | $17,850 plus 38c for each $1 over $80,000 | 22.3% – 31.0% |
| $180,001 and over | $55,850 plus 45c for each $1 over $180,000 | 31.0% – 45% |
For more information about ABN’s and TFN’s please visit the Australian Taxation Office at www.ato.gov.au.
