Owning a dental, veterinary or medical practice comes with a unique set of responsibilities, particularly when it comes to financial and tax compliance. Whether you’re just starting out or have been in business for years, staying on top of your tax obligations and financial record-keeping is essential to keeping your practice running smoothly.
But with so many moving parts, from BAS lodgements, payroll and superannuation payments, to tax and FBT returns, keeping up with financial compliance can quickly become overwhelming. Add to that the ever-changing tax legislation, and it’s easy to see why many healthcare professionals turn to specialist advisors for support.
Key compliance requirements to be aware of
As a business owner, you’re required to meet several tax and accounting obligations throughout the year, including:
- Lodging quarterly Business Activity Statements (BAS)
- Making employee superannuation contributions
- Managing payroll and meeting PAYG withholding requirements
- Preparing and lodging annual business tax returns
- Submitting a Fringe Benefits Tax (FBT) return if applicable
You’ll also need to be aware of which taxes apply to your practice. These may include:
- Income tax
- Capital Gains Tax (CGT)
- Goods and Services Tax (GST)
- PAYG withholding and PAYG instalments
- Payroll tax (depending on your state or territory)
Not all taxes will apply to your practice, so it’s important to seek advice on your specific obligations.
What records do you need to keep?
Maintaining clear, accurate records is a crucial part of meeting your tax and financial compliance obligations. The ATO requires that you keep records of:
- Business income and expenses (including receipts and invoices)
- Asset purchase details and related expenses
- Employee and contractor payments
- Superannuation contribution payments
- GST and BAS-related documentation
- Any calculations, estimates or determinations used in your tax or super affairs
Other things to keep in mind:
- Most records must be stored for at least five years from the date the relating tax return is lodged
- Some records (e.g. company or employee records) may need to be kept for seven years
- We strongly recommend you (or your bookkeeper) use a cloud accounting software such as Xero or MYOB to ensure accurate and efficient record-keeping
Using the right systems can significantly reduce the risk of errors and help ensure you meet your compliance requirements on time.
Why staying up to date matters
Tax laws and reporting requirements change frequently, so it’s important to stay up to date with legislation updates. Missing a key update or lodging your paperwork late can result in penalties, unexpected tax bills, or audits. This is why having an experienced accountant who understands the ins and outs of healthcare practice ownership can make such a big difference.
How Amalgam can help
At Amalgam Advisors, we work exclusively with healthcare professionals. That means we’re across the specific compliance requirements, industry-specific deductions, and tax planning opportunities that apply to your practice. Our team can support you with everything from tax return preparation and ATO registrations to capital gains advice and ongoing accounting support.
More importantly, we take the time to understand your practice and your goals, so we can offer practical, strategic advice – not just financial compliance box-ticking.
Get in touch with the Amalgam Advisors team to find out how we can support you.
