Over the last week, I navigated the health system outside of Australia for the first time, which was initially a daunting experience. My husband, Stephen Chard, had an accident while our family was on holiday in Singapore. At first, I didn’t know what to do or where to go; however, we quickly decided on the GP clinic near our hotel. It was such an impressive and efficient system, I couldn’t believe how easy everything flowed and how seamlessly the GP, surgeon and hospital communicated. And as the mum of 3 boys, I have been through my fair share of broken limbs in Australia! 3.00 pm - Accident on Sentosa Island 4.30 pm - We arrived at the local GP clinic in the city near our hotel 4.45 pm - X-ray taken in GP rooms 5.00 pm - Fracture identified and contact with surgeon initiated 8.00 pm - Arrived at the hospital with the surgeon waiting to consult with us, surgical plan made 9.00 pm - New cast applied and Stephen was admitted to the hospital Next day - Surgery 5 days later - Back to Australia. Thank you to the caring team at Crawfurd Hospital and the expert Dr Keith Lee. Navigating Overseas Healthcare

Optimise Your Practice Software Spend: A 5-Step Guide In today’s healthcare landscape, software plays a pivotal role in streamlining operations, improving patient care, and enhancing staff efficiency. However, many medical practices struggle with managing their software expenses effectively. How much should you be spending? Are you getting the best return on investment (ROI)? In this video, we provide actionable tips to help you audit, evaluate, and optimise your software expenditures. Optimise Your Practice Software Spend: A 5-Step Guide Understanding Software Spend Among medical practices, software spending typically ranges from 1% to 2% of equivalent practice billings. Outliers exist, with some practices spending as little as 0.5% while others allocate up to 4%. Whether your expenditure falls on the lower or higher end of the spectrum, the key is ensuring you're receiving maximum ROI. Before assessing whether you’re overspending or underspending, ask yourself these five critical ROI questions: 5 Key Questions to Evaluate Software ROI Is the software increasing patient satisfaction or improving care delivery? Is it reducing staff workload? Is it protecting your practice from fraud or human error? Is it generating revenue or opening new income streams? Is it improving operational efficiencies overall? If your software doesn’t support these critical goals, it might be time to reevaluate its purpose and cost. A 5-Step Process to Audit and Optimise Software To ensure your practice is maximising its software investments, Kelly Chard recommends a simple, five-step process. Let’s dive into each step: Step 1: Gather a Complete List of Software Start by listing every software tool your practice uses. Enlist your team’s help or refer to your Xero file to export all relevant software expenses. This will give you a clear view of tools currently in use. Step 2: Categorise Software into Functional Buckets Group each software into specific categories or “buckets” based on its purpose. Typical examples include: Communication (e.g., email, messaging platforms) Online scheduling and payments Data insights and analytics Payroll and bookkeeping You’ll likely identify 5–10 functional buckets. Categorising these tools provides visibility into how different software supports various aspects of your practice. Step 3: Quantify Monthly and Annual Spend Quantify how much you’re spending within each bucket on a monthly and annual basis. This step is essential for identifying areas of disproportionate spending or underutilised tools. Step 4: Evaluate Software Effectiveness Here’s where the real work starts. Engage with your team and audit software performance: What tools are actively used? What tools are underutilised or unused entirely? What tools have bugs, inefficiencies, or cause headaches? Are there missing features that could be useful? Then ask a critical question: If a tool was removed, how would tasks be handled? This evaluation process will highlight inefficiencies and gaps in your systems. Refer back to the five ROI questions above to ensure your software investments align with your practice’s priorities. Step 5: Eliminate, Consolidate, and Optimise With a comprehensive list and evaluation complete, it’s time to act: Cut unused or redundant software. Double payments or forgotten subscriptions are common and must be dropped. Negotiate better terms with vendors. Explore price reductions or upgrade plans to take advantage of unused features. Consolidate functionality into fewer tools. For example, one software tool might offer features that make another redundant. Train staff to maximise software use. A lack of training often leads to the underutilization of available features. At the end of Step 5, your practice should have an optimised software stack that maximises ROI while aligning with operational goals. Balancing Efficiency and Expenses Optimising software spend isn’t just about cutting costs. It’s about ensuring that every dollar you invest works towards making your practice more efficient, sustainable, and patient-focused. By following the five-step process outlined above, you’ll have the tools to audit your practice’s software expenses, streamline operations, and position your business for long-term success. Next Steps Take time this week to review your software expenditures using the process above. With thoughtful evaluation and optimisation, you’ll not only save money but also improve the efficiency and effectiveness of your practice. If you need help in working through the five steps, the  GrowthMD team is here to help .

From 1 July 2025, the ATO will deny tax deductions for interest charged on unpaid tax debts, including: General Interest Charge (GIC) - currently 11.17%  Shortfall Interest Charge (SIC) - currently 7.17%   This applies regardless of when the debt was incurred, thereby ending the long-standing practice of treating these interest costs as deductible only when related to income-generating activities. What does this mean? Previously, businesses could claim ATO interest as a tax deduction, effectively reducing the real cost of carrying ATO tax debt. With the new changes, the full interest cost will now be non-deductible, thereby increasing the financial burden, particularly for SMEs that are already managing tight cash flows. Key Impacts: Higher after-tax cost of unpaid tax debts Reduced cash flow for businesses relying on ATO payment plans Increased risk of unexpected tax bills and interest charges What you should do: Pay off ATO debts as soon as possible to avoid accumulating non-deductible interest Avoid using the ATO as a line of credit; it’s no longer cost-effective Consider refinancing tax debts through commercial loans, where interest may remain deductible Review your cash flow to ensure timely BAS and tax payments Update your tax planning strategies to reflect this change Need guidance? If you’re unsure how this change affects your current or future liabilities, the   GrowthMD team is here to help . We’ll help you assess the impact, explore refinancing options, and restructure your tax management approach for maximum efficiency.

With the financial year end just around the corner, we wanted to share our end-of-quarter financial review checklist, specifically designed for medical practices, which we hope you’ll find helpful. Looking for guidance and support in growing and sustaining a profitable practice? At GrowthMD, we constantly partner with the health industry on the latest trends, technologies, workflows and taxation structures.  ​ We focus purely on the medical profession….and we love it! We would love to connect; feel free to contact us at any time.

What Medical Practice Owners Need to Know As a medical practice owner, you are focused on growing your wealth while balancing the demands of your practice and your profession. That’s why recent discussions around proposed tax changes to superannuation balances over $3 million should be on your radar. Let’s explore what these changes could mean for you and what steps you can take to stay ahead. What’s Behind the Proposed Division 296 Tax Legislation? The proposed legislation introduces an additional 15% tax on earnings attributed to superannuation balances exceeding $3 million. This would effectively raise the tax rate on concessional earnings from the current 15% to as high as 30% for affected balances. It is important to note that the $3 million threshold is intended to relate to each member's total superannuation balance, and not to the total investments or assets of a particular superannuation fund. One of the most contentious aspects of the legislation is how earnings are calculated. They may include both realised and unrealised gains (e.g. the increased market value of assets you haven’t sold yet), which could result in unexpected tax implications. What Does This Mean for Medical Practice Owners? Even with the additional tax, superannuation can be a tax effective strategy for high income earners who may otherwise face personal tax rates of up to 47% (including the Medicare levy). However, medical professionals with significant super balances tied to appreciating assets, such as property, could face larger tax liabilities once this legislation is enacted. For practice owners who are asset-rich but cash-poor within their superannuation fund, this may pose challenges when it comes to liquidity for paying tax bills. Understanding how these changes could impact your overall financial situation is crucial. What Can You Do to Stay Ahead? If your super balance exceeds $3 million or is nearing this threshold, now is the time to consult with your accountant and financial adviser on your strategy. Here are some key actions that a financial adviser will be able to advise on: Spouse Super Contributions: Exploring spouse contribution strategies to help distribute super balances more evenly between partners. Alternative Investment Vehicles: Good advisers will discuss the suitability of your overall investment vehicles. Reviewing Asset Allocation: Reviewing the mix of assets in your investment strategy in line with taxation changes. Take Action Now The Division 296 tax proposal is still under review, but its potential impact on high-balance superannuation accounts highlights the importance of proactive planning. For medical practice owners, staying informed and obtaining good advice can help protect your financial future while ensuring you’re in the best possible position to succeed. At GrowthMD we work with a number of savvy financial planners to obtain the best results for our clients. If you have questions or need support, our team are here to help. Reach out to discuss the taxation implications of these changes. ^This information is general in nature and should not be considered as financial advice. We encourage all readers to obtain their own advice from licenced financial planners and qualified accountants.

Get up to speed on everything you need to know this EOFY, from my recent presentation hosted by HotDoc . I cover what’s new in tax for medical professionals and practices, how to maximise your deductions, and key ATO hotspots to watch. Tax Time for Doctors I share her top tips for a smooth financial year-end. The session covered. What's new in tax for medical professionals and medical practices How to maximise your year-end deductions ATO Hotspots & Focus Areas My top tips for a smooth End of the Financial Year Tax Time for Doctors

With the financial year end just around the corner, we wanted to share our end-of-year tax planning, specifically designed for medical practices, which we hope you’ll find helpful. Now's the time to review what strategies you can use to minimise your tax before 30 June 2025. Looking for guidance and support in growing and sustaining a profitable practice? At GrowthMD, we constantly partner with the health industry on the latest trends, technologies, workflows and taxation structures.  ​ We focus purely on the medical profession….and we love it! We would love to connect; feel free to contact us at any time.

Today, let's delve into one of the most misunderstood tax concepts for company owners, Division 7A . To set the scene, here's a call I often get: Business owner:  “Hi Kelly, I want to take $100,000 out of the company to renovate my house.” Me:  “Great. How do you plan to take it? As wages, a dividend, or maybe through a documented loan agreement?” Business owner:  “I don’t know. It’s my company; I own 100% of it. The money’s there. I just want the $100,000.” On the surface, this sounds simple, but here’s the catch: the way you take money out of your company  matters immensely for tax purposes, and doing it incorrectly can result in adverse consequences. Understanding Division 7A Company Money vs. Personal Money One of the biggest misconceptions business owners often have is failing to distinguish between company money and personal money. Even if you’re the sole director and 100% shareholder, the Australian Taxation Office (ATO) views company money as separate from your personal finances. The tax rate difference: Your company might pay tax at 25%, but you could be taxed at 47% on your personal income. If you enjoy personal benefits from withdrawing company money without proper documentation, the ATO isn’t going to let it slide. They’ll want 47% tax paid on it, not the 25% company tax. This disconnect is exactly why the tax rules under Division 7A exist. What Is Division 7A? Division 7A is a set of tax rules designed to prevent company shareholders, directors, and associates from withdrawing money from their companies tax-free. If you were to take $100,000 from the company without following proper processes, the ATO could classify that withdrawal as an unfranked dividend. What does that mean? Unfranked dividend: The $100,000 counts as assessable income in your personal tax return. No franking credits. No tax deductions. This can lead to a disastrous tax situation, something you’ll want to avoid at all costs. How To Take Money Out the Right Way Thankfully, there are legitimate and compliant ways to access money from your company. Here are your options: 1. Salary and Wages or Dividends. These are the two most straightforward and tax-efficient methods. Salary and wages: The money is taxed like any other personal income. Dividends: You may benefit from franking credits depending on your company’s tax situation. 2. Documented Loan Agreement. If neither salary nor dividends suit your tax profile, money can also be taken as a loan, but this must comply with strict Division 7A rules. Division 7A Loan Requirements: Documented loan agreement: The loan must be formalised with proper documentation. Specified loan term: Unsecured loans have a maximum term of 7 years. Secured loans (e.g., those against property) can have a term of up to 25 years. Interest charges: Interest must be paid to your company at the ATO-set rate (8.77% for FY 2025). Minimum annual repayments: You’re required to repay principal and interest each year over the loan term. Timing: The agreement must be signed off before the lodgment date of your tax return for the year in which the loan was taken. Even if a single step is missed (e.g., failing to document the loan properly or delaying repayments), the ATO can declare the whole loan amount as an unfranked dividend, with dire tax consequences. While Division 7A loans can be a useful tool for tax planning, they should not be abused or allowed to accumulate unchecked. Here’s why: Snowballing repayments: Year after year, repeated loans can create a growing debt pile. Minimum repayments will increase, and interest charges will balloon. Long-term tax inefficiency: Without proper management, this can create financial and tax headaches. Navigating Division 7A rules and ensuring compliance requires expertise. Accountants play a vital role in: Structuring withdrawals from your company. Documenting loan agreements correctly. Ensuring tax efficiency while avoiding adverse consequences. Understanding Division 7A is crucial for business owners to avoid costly mistakes when managing the flow of money between their company and personal finances. If you have concerns or questions, the GrowthMD team is here to help , and we can guide you through the complex tax landscape, ensuring you stay compliant while optimising your tax position.

If you're a doctor operating through a company, trust, or partnership within a group practice, ATO guidance around profit allocation may directly impact how you're taxed. These rules target Individual Professional Practitioners (IPPs), doctors, lawyers, accountants, and other professionals who generate income primarily through their personal effort but use business structures to manage that income.  Important note: These rules do not apply if you're working independently and simply paying a service fee to a clinic. If you invoice a practice and retain all earnings personally, this guidance likely does not affect you.  The ATO's Practical Compliance Guideline (PCG 2021/4), in effect since 1 July 2022, outlines how the ATO assesses risk in relation to profit allocations within professional firms. With tax planning season underway, this guidance is crucial for ensuring compliance with your structure.  Step One: Passing the Two Gateways  Commercial Rationale – Your business structure must have a clear and genuine commercial purpose.  Thinking Point : Why do you use your current structure? Is it to allow for growth, support succession or exit planning, protect personal assets, or provide operational flexibility? If the only real benefit is tax reduction, this may raise concerns.  No High-Risk Features – Your arrangement must not include any features the ATO considers inherently high-risk.  Thinking Point : Are you distributing income to family members who don't contribute to the practice? Is there a circular flow of funds or use of tax-exempt entities? These are all red flags that may attract audit attention.  Step Two: The ATO's Risk Assessment Framework  Once your arrangement passes the gateways, the ATO evaluates its risk level using a points-based system across three criteria:  Proportion of Profit Returned to the IPP – How much of the profit from your share in the practice is reported in your personal tax return?  Effective Tax Rate – What is the actual tax rate being paid on the income generated from your services?  Remuneration Benchmarking – Are you being paid a commercially reasonable salary that aligns with what a doctor in a similar role would expect?    Each factor contributes to a total score that places you into one of three zones:  Green Zone: Low risk – unlikely to attract ATO review.  Amber Zone: Moderate risk – may be subject to closer examination. Red Zone: High risk – more likely to trigger an ATO audit.  Checklist: Do These Rules Apply to You?  Are you a doctor earning income via a trust, company, or partnership?  Is a significant portion of that income not included in your personal tax return?  Is your effective tax rate unusually low for your income level?  Have you reviewed your remuneration against industry standards?  Does your structure have a genuine commercial purpose beyond tax?  Are you confident your arrangement avoids high-risk features?  If some of these questions raise uncertainty around profit reporting, effective tax rates, or remuneration benchmarking, it may be time to review your structure. Conversely, if you're confident your arrangement is commercially grounded and compliant, you're already on the right track.  At GrowthMD, we specialise in helping doctors structure their practices effectively while remaining compliant with ATO expectations. Contact us for a confidential review of your arrangement and tailored advice for your medical business.

As a practice owner or manager, you know that having an amazing team is the secret ingredient to running a thriving business. That's why I'm excited to share three tax-savvy rewards to help you appreciate and celebrate your incredible staff, without worrying about a hefty tax bill. Here's a breakdown of three tax-savvy strategies you can adopt to reward your amazing employees: 1. Salary Packaging Salary packaging allows employees to structure their pay to include both cash and benefits. Common benefits such as novated leases for vehicles, work laptops, phones, or extra superannuation contributions  typically minimise tax impacts and avoid fringe benefits tax (FBT). Ensure proper structuring with the help of an accountant to achieve compliance with tax regulations. 2. Gift Cards Under $300 Gift cards are a simple, tax-effective way to show appreciation on an infrequent basis , such as during Christmas or after a major team achievement. These must be under $300  and not entertainment-based  to be exempt under the ATO's "minor and infrequent exemption." Examples: A Rebel Sport  or Westfield  gift card works well. 3. Cash Bonuses Cash bonuses are always a hit with employees, but come with tax consequences. Bonuses must be processed through payroll, which triggers PAYG withholding, superannuation, and potentially payroll tax . When budgeting for a cash bonus, consider adding an extra 25%-30% on the bonus amount to account for these deductions. Bonus Non-Monetary Appreciation Ideas Acknowledgment : A simple "thank you" can go a long way in building morale. Career Investment : Sending employees to industry conferences  or training courses  for professional development. Gift of Time : Reward exceptional effort with a day off  to spend with friends and family. I hope you found some helpful takeaways in these three tips! Your team is truly the heart of your practice, and showing them the proper appreciation can do wonders for morale and retention. If you'd like more guidance or have specific questions, particularly regarding tax-specific arrangements such as salary packaging, please feel free to ask. We recommend consulting your accountant or reaching out to  Growth MD —we're here to support you.