Physiotherapists, psychologists, occupational therapists, podiatrists, chiropractors and other allied health workers often pay for their own equipment, registration, insurance and training. Many of those costs are deductible, but some popular claims, such as business clothes and networking events, are not.
This guide explains what employed allied health professionals can claim in the 2025-26 return being lodged now, and what changes for 2026-27. The rules and rates were checked against the ATO guide for doctors, specialists and other medical professionals, which names allied health roles, and related ATO pages on 9 October 2026.
It is written for employees. If you work as a contractor with an ABN, the personal services income rules may apply as well. Nurses and midwives have their own nurse and midwife deductions guide.
Key takeaways
- The ATO medical professionals guide covers physiotherapists, psychologists, OTs, podiatrists, chiropractors, optometrists, osteopaths, dentists and pharmacists.
- Equipment costing $300 or less and used mainly for work is claimed in full; dearer items such as a treatment table are depreciated.
- Car trips between clinics and to home visits are 88c per km for 2025-26 and 91c per km for 2026-27.
- Your annual registration renewal and indemnity insurance you pay yourself are deductible.
- Business attire, networking functions, grooming and parking at your usual clinic are not deductible.
Allied health deductions at a glance
| Expense | Can you claim it? | Key condition |
|---|---|---|
| Treatment equipment | Yes | Over $300 is depreciated |
| Car trips to home visits | Yes | Not home to your usual clinic |
| Registration renewal | Yes | First registration excluded |
| Indemnity insurance | Yes | Only if you pay it |
| Association membership | Yes | Paid by you |
| Logo uniform, protective scrubs | Yes | Distinctive or protective |
| Business attire | No | Conventional clothing |
| CPD and postgraduate study | Yes | Linked to current role |
| Networking dinners and galas | No | Entertainment is private |
Source: ATO medical professionals guide, ATO car expenses 2026, ATO $300 assets, checked 9 October 2026.
Who counts as an allied health professional for ATO purposes?
The ATO does not publish a separate allied health guide. Its guide for doctors, specialists and other medical professionals expressly covers physiotherapists, optometrists, dentists, osteopaths, podiatrists, psychologists, chiropractors, pharmacists, occupational therapists and medical laboratory technicians working as employees in hospitals, practices or labs.
For any work claim, three tests apply:
- You spent the money and were not reimbursed.
- It relates directly to earning your income.
- You have a record to prove it.
Can you claim car and travel costs?
Driving from home to your regular clinic is private, even for late appointments. You can claim:
- Travel between your usual clinic and another workplace, such as a second clinic or a hospital.
- Driving from home directly to an alternative workplace.
- Home visits where you have no fixed workplace for the day, including from home to the first client and from the last client home.
- Parking and tolls on those work trips (not at your regular clinic).
Carrying equipment only makes a commute deductible if it is essential, bulky and there is no secure storage at work. A box of files does not qualify.
Using the cents per kilometre method, claim 88c per km for 2025-26 and 91c per km for 2026-27, up to 5,000 km per car. If you drive more, a logbook usually gives a better result. A car allowance from your employer is income, and you still claim your actual work kilometres separately.
What equipment and tools can you claim?
Treatment tools, assessment instruments and professional books you buy yourself are deductible to the extent you use them for work. The $300 rule decides how you claim them.
| ATO example | Cost | How it is claimed |
|---|---|---|
| Psychologist’s work briefcase | $275 | Full cost in year of purchase |
| Physiotherapist’s massage table | $1,000 | Decline in value over effective life |
| Ophthalmologist’s textbook | $350 | Decline in value |
| Set of six books at $65 each | $390 | Decline in value (set over $300) |
| Stethoscope or scales | Under $300 | Full cost if mainly for work |
Source: ATO medical professionals guide, ATO assets costing $300 or less.
Repairs to your own work tools are deductible. Equipment your employer provides is not.
Are registration, insurance and memberships deductible?
Registration
Your annual practising certificate or registration renewal is deductible if you need it for your current job. The cost of first obtaining registration is not.
Professional indemnity insurance
Indemnity insurance is deductible if you pay it yourself and it relates to your work. If the clinic pays it, you cannot claim it.
Associations and unions
Fees for professional associations and unions linked to your work are deductible. Your income statement can be evidence where fees are deducted from pay.
Can you claim clothing and laundry?
Business attire is not deductible, even when the clinic expects it. The ATO example is an occupational therapist who cannot claim business clothes. You can claim protective clothing, such as thick protective scrubs, and compulsory uniforms with a logo, plus non-slip shoes worn with them.
Laundry is $1 per work-only load or 50c per mixed load. For 2025-26, a laundry claim of $150 or less needs no written records, but you must show how you calculated it. From 2026-27 the ATO requires written evidence for all clothing and laundry claims.
What study and conference costs are deductible?
Self-education is deductible under TR 2024/3 if it maintains or improves skills for your current job or is likely to increase your income from it. CPD for an optometrist and postgraduate study for a dentist are ATO examples. A lab assistant studying to become a paramedic cannot claim, because the study is for a new job. See our self-education guide.
Conference fares, registration and, for overnight trips, accommodation and meals can be claimed when the main purpose is work. A stress management course that did not relate to a chiropractor’s skills was not deductible.
Phone, internet and working from home
Claim the work share of phone and internet with records such as an itemised bill. If you write reports or run telehealth sessions at home, the fixed rate method gives 70c per hour worked from home, and covers phone and internet so you cannot claim them again.
Worked example: an employed physiotherapist in 2025-26
Sam is an employed physiotherapist with taxable income of about $95,000. These figures are illustrative. In 2025-26 Sam paid for:
- Professional association membership: $600
- Registration renewal: $250
- Indemnity insurance not covered by the clinic: $350
- CPD course: $900
- Home visits from the clinic: 2,000 km x 88c = $1,760
- Laundry: 2 loads a week x 46 weeks = 92 loads x $1 = $92
- Resistance bands and a goniometer: $180
Total deductions: $600 + $250 + $350 + $900 + $1,760 + $92 + $180 = $4,132.
At a 30% marginal rate plus the 2% Medicare levy, the tax saving is about $4,132 x 32% = $1,322.24. Sam’s business shirts and clinic parking stay out of the claim.
Rule of thumb: If an item treats patients, keeps your registration current or sharpens skills you already use, it is usually deductible. If it is something anyone could wear, eat or enjoy, it usually is not.
What records do you need?
Receipts should show the supplier, amount, item and date. If total work-related claims are over $300, you need written evidence for all of them, and car claims need a trip record or logbook. Keep records for five years from lodgment. Contractors should also read our sole trader deductions guide.
Common mistakes allied health professionals make
- Claiming business clothes: conventional clothing is private, even under a dress code.
- Claiming a $1,000 table in full: items over $300 are depreciated.
- Claiming the clinic commute: home to your usual clinic is private.
- Claiming networking events: galas and industry breakfasts are entertainment.
- Double-claiming at home: the 70c fixed rate already covers phone and internet.
FAQ about allied health tax deductions
Can a physiotherapist claim a massage table?
Yes, if you bought it yourself and use it for work. Because a massage table usually costs more than $300, you claim its decline in value over its effective life rather than the full price in one year. The ATO gives this exact example for a physiotherapist who bought a $1,000 table used only for work. Equipment your employer supplies cannot be claimed.
Is professional indemnity insurance deductible for allied health workers?
Yes, if you pay the premium yourself and the cover relates to your work. If your employer or clinic pays the premium for you, you cannot claim it. Keep the policy schedule and receipt with your tax records, and only claim the amount you actually paid in the income year.
Can I claim my annual registration renewal?
You can claim the annual renewal of your practising registration if you need it to work in your current role. The cost of obtaining your registration for the first time is not deductible, because it is incurred to start earning income rather than in earning it. A driver licence is also private, even if your job needs one for home visits.
Can I claim driving to home visits?
Yes. Travel from your clinic to a client’s home, between client homes, or directly from home to an alternative workplace can be claimed. Driving from home to your regular clinic and back is private. Keep a record of the kilometres and the purpose of each trip, or a logbook if you drive a lot for work.
What changes if I work as a contractor with an ABN?
Many physios, psychologists and other practitioners work as contractors. You then report business income and claim business expenses rather than employee deductions, and the personal services income rules may limit some claims. Contractors also need to consider GST registration if turnover reaches $75,000. Get advice on your structure before tax time.
Talk to specialist before it costs you
15-minute discovery call. No obligation, no jargon.
Talk to a registered tax agent
Nanak Accountants can review your deductions and lodge your return as a registered tax agent, whether you are an employee or a contractor. Call 1300 626 258 or visit www.nanakaccountants.com.au.
This article is general information only and is not personal tax or legal advice. Figures and rules were checked against the ATO guide for doctors, specialists and other medical professionals and ATO pages on car, clothing, assets, working from home and records on 9 October 2026. Rates and thresholds change, so confirm the current position before acting.
