Maximise Your Refund with These Common Psychologist Tax Deductions
If you’re a registered psychologist, therapist, or mental health professional in Australia, claiming the right tax deductions can make a significant difference to your annual refund. Whether you work in private practice, public health, or as a consultant, understanding what expenses are deductible under the ATO rules is key.
Your deductions are below.
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Psychologist Employment Overview:
- Average weekly pay: $2,228.10
- Employment size: 31,710
- Future growth: Very Strong
- Skill level: Bachelor Degree or Higher
Common Tax Deductions for Psychologists in Australia:
- Motor vehicle travel between hospitals, clinics, and visiting patients.
- Motor vehicle travel to and from work if having shifting workplaces – working at more than one site each day before returning home.
- Phone and internet – work %.
- Overnight travel expenses attending medical conferences, seminars, and training courses – includes airfares, accommodation, and meals.
- Self-education courses.
- Magazines, books and journals related to health and medicine.
- Medical defence and income protection insurance.
- Compulsory work uniform branded with the employers logo.
- Computers, tools and equipment.
- Handbags, briefcases and satchels.
- Union fees, licences, registrations and subscriptions.
- Home office running expenses.
- Overseas conferences, courses and study tours.
What You Can’t Claim as a Psychologist
The ATO doesn’t allow deductions for:
- Meals and drinks at industry events involving entertainment
- Clothing that is not a compulsory uniform (e.g. plain business attire)
- Travel primarily for personal reasons
- Fines or penalties
Tax Planning Strategies We Can Help You With:
- Self-education expenses
- Overseas conferences, courses and study tours
- Computers, tools, equipment and other assets
- Compulsory work uniform
- Union fees, licences, registrations and subscriptions
- Phone and internet
- Motor vehicle expenses: cents per km method
- Home office running expenses
- Handbags, briefcases and satchels
- Overnight travel expenses
Click here to see Tax Calculator for Psychologists.
Frequently Asked Questions
- What are the most common tax deductions for psychologists in private practice?
Common claims include professional indemnity insurance, client travel, home office expenses, and therapy tools like computers and reference materials. - Can I claim costs for therapy room rental?
Yes. If you rent a space to see clients, the rental cost is fully deductible.
- Is supervision or peer consultation deductible?
Yes, if it’s required for registration or part of your professional development.
- Can I claim conference expenses overseas?
You can, but the event must be directly related to your field, and you’ll need evidence showing the trip’s main purpose was professional.
- Are psychologists allowed to claim therapy-related resources like mindfulness books or apps?
Yes, if they’re used to improve or support your treatment practices and aren’t for personal use only.
