Specialist Tax & Accounting for Dermatologists.
From Medicare consultations and Mohs surgery to high-margin cosmetic procedures, we help dermatologists, practice owners, and associates optimise tax structures, manage laser equipment depreciation, and maximise profitability.
How we can help you
Associate & Locum Dermatologists
The Challenge: Operating across multiple private rooms, public hospital appointments, or visiting specialist roles often creates severe tax compliance risks under Personal Services Income (PSI) rules. High income with improper structuring leads to overpaying tax and ATO scrutiny on contractor classifications.
The Santoro Grieco Solution: We implement compliant PSI strategies, manage your professional indemnity and clinical expense claims, and establish optimal tax structures (such as sole practitioner or company setups) to protect your earnings while maintaining strict ATO compliance.
Medical & Cosmetic Clinic Owners
The Challenge: Dermatology practices face complex dual-revenue streams where Medicare-rebated medical consultations are GST-free, but cosmetic procedures (injectables, laser skin resurfacing) attract GST. In addition, recent state revenue office rulings on medical center payroll tax create massive liability risks for tenant-doctor models.
The Santoro Grieco Solution: We configure integrated cloud accounting (Xero) to automatically segment medical vs. cosmetic billing for faultless GST reporting. We also review and structure Service Entity Contracts and associate agreements to mitigate unexpected payroll tax exposure.
Practice Founders & Expanding Clinics
The Challenge:Acquiring high-value clinical equipment (e.g., Pico lasers, phototherapy units, surgical suites) involves massive capital outlays. Practice owners struggle to optimize equipment loans against depreciation, impacting cash flow during clinic growth or multi-partner expansion.
The Santoro Grieco Solution: We map out tailored equipment financing and capital allowance depreciation schedules (Division 40 & 43) to maximize write-offs and protect cash flow. For expanding practices, we implement Service Trusts and multi-entity structures to support partner buy-ins and asset protection.
Tax Deductions for Dermatologists
Specialist Tax Deductions for Dermatologists
ACD & Licensing: Deductible fees for the Australasian College of Dermatologists (ACD) fellowship/membership and annual AHPRA registration.
Technology & Software: Deductions for clinical imaging software (e.g., DermEngine, MoleMap systems), dermatoscopy devices, practice management platforms (Genie, Best Practice, Clinic to Cloud), and high-resolution diagnostic displays.
Protective & Clinical Equipment: Claims for surgical scrubs, lab coats (including laundry costs), protective face shields, dermatoscopes, cryotherapy equipment, and surgical biopsy kits.
Professional Indemnity: Deductible premiums (essential for high-liability procedural, surgical, and cosmetic work).
Work-Related Travel: Claims for travel between separate private consulting rooms, day surgeries, hospitals, and for attending global dermatology congresses (e.g., WCD, EADV, AAD).
Self-Education & CPD: Full deductions for Mohs surgery training, laser safety certifications, cosmetic injectable workshops, sub-specialty fellowships, and journal subscriptions (e.g., JAAD or Australasian Journal of Dermatology).
Testimonials
Frequently Asked Questions
Still have questions? Take a look at the FAQ or reach out anytime.
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Medicare-rebated medical consultations, diagnostic biopsies, and bulk-billed skin cancer removals are GST-free under Australian tax law. However, purely cosmetic procedures (such as cosmetic laser resurfacing, anti-wrinkle injections, and dermal fillers) attract 10% GST.
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For major capital outlays—such as Pico, Pulsed-Dye, or CO2 laser systems—tax write-offs depend on the purchase value and finance structure:
Under $20,000: Eligible items (e.g., advanced dermatoscopes or cryotherapy units) can typically be claimed immediately via the Instant Asset Write-Off scheme.
Over $20,000: High-value laser systems are depreciated over their useful life under Division 40 capital allowance rules.
Financing Strategy: Structuring equipment through a chattel mortgage or equipment lease allows you to claim the interest expense, GST input credits upfront, and annual depreciation to offset practice income.
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If a significant portion of your income comes from your personal skills and clinical labor across multiple sites as an independent contractor, the ATO’s Personal Services Income (PSI) rules may apply.
Without proper structuring, the ATO may treat your contractor revenue as personal salary, preventing you from retaining earnings inside a company structure or splitting income via a service trust. Passing the "Unrelated Clients Test" or "Results Test" allows you to maintain a compliant corporate or trust entity structure.
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State Revenue Offices have placed heavy scrutiny on medical and specialty clinics operating under tenant-doctor or facility-sharing models. If your clinic collects patient fees on behalf of associate or contractor dermatologists and remits the net balance back to them, state tax authorities may deem those payments to be "wages" subject to payroll tax.
To mitigate this risk, service entity agreements, bank account flows, and patient invoicing processes must strictly reflect a genuine arm's-length facility service arrangement.
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As a practicing dermatologist, you can claim 100% of expenses directly related to maintaining or upgrading your clinical skills:
College & Licensing Fees: Australasian College of Dermatologists (ACD) membership, fellowship dues, and annual AHPRA registration.
Self-Education & Conferences: Registration, flights, and accommodation for domestic and international medical congresses (e.g., WCD, AAD, EADV).
Specialized Training: Sub-specialty fellowship costs, laser safety certification courses, and Mohs surgery workshops.
Subscriptions & Software: Academic journals (e.g., JAAD), clinical reference databases, and specialized imaging software (e.g., DermEngine).