As a disturbing trend, we have seen the promotion of various tax structures which, in many instances, do not comply with tax office guidelines. We ensure that all of the tax structures we recommend are allowed under current tax law, and we revise these on an ongoing basis. We regularly provide workshops to RACS and RACGP on this subject matter.
Superannuation rules change regularly and in order to achieve the best outcomes you need to know exactly what your deductible and non deductible super contributions can be. Retirement planning begins a long time prior to your final years of work, so it pays to know all available options for the investment of super assets to achieve the right outcomes over the long term.
Litigation is a concern that all medicos have, so it makes sense to have assets protected to some degree. This can mean a trade off between tax efficiency and asset security, so it is our approach to take a common sense view as to what assets should be held in trusts and what should be left outside. Experience also tells us that very few doctors ever have their assets taken from them due to litigation, this does not mean that you ignore asset protection, it simply means a balanced approach is what is required. Some practices go overboard here and this will end up costing significant amounts in accounting and legal fees.
When going into private practice for the first time there is much to consider:
- What will my business structure be?
- Will I join an established clinic or go out on my own?
- How will I pay for the equipment I require?
- What level of overdraft should I initially start with?
- How will I manage my billings and bookkeeping?