April 2017 Meet Ups
April 10, 2017
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Melbourne Cover

In Early April 2017 we had three meet ups – Newcastle, NSW; Melbourne, VIC; and Canberra, ACT.

Newcastle Melbourne Canberra

Newcastle

On Saturday 1st of April Kenna and Tania got together with their kids at New Lambton Park. Despite the low numbers they had fun and their kids had a blast climbing trees.

Melbourne

It was a small gathering and a rather cold morning at Fitzroy Gardens on Sunday 2nd April. The kids played and adults got a nice chat together.

Canberra

Weston Park hosted a lovely morning out on Saturday 8th April. A lovely time was had by all.

Upcoming: Perth

A few spouses are getting together at Mueller Park in Perth for a casual get together on Sunday 19th April 2017 – if you are new in Perth, and/or would like to meet other medical families, come along! All Welcome! Check our Facebook Event for more details.

Receiving lump sum payments
dr tax

Lump sum payments received by healthcare practitioners –

Ordinary Income Not Capital Payments

 

The ATO are concerned about healthcare practitioners receiving lump sums and treating them as capital payments and have released a detailed fact sheet setting out what they expect to see in such situations.

If a healthcare practitioner (such as a doctor, dentist, physical therapist, radiologist or pharmacist) gets a lump sum payment from a healthcare centre operator, according to the ATO “it’s probably not a capital gain. It’s more likely to be ordinary income”.

Specifically, the lump sum will typically be ordinary income of the practitioner for providing services to their patients from the healthcare centre. Importantly, the mere fact the payment is a oneoff lump sum, or expressed to be principally consideration for the restraint imposed, for the goodwill or for the other terms or conditions, does not define it as having the character of a capital receipt.

Lump sum arrangements

In the healthcare services industry, it is now common for some practitioners to operate from healthcare centres run by third parties. This frequently occurs without any stated partnership or employment relationship between the third party and the practitioner.

The third parties that run these centres generally encourage practitioners to start work or continue to work from their centres. They may offer lump sum payments for this purpose and there is nothing wrong with that. Our concerns relate to the tax treatment of the lump sum payments by the practitioner.

The ATO’s concerns may affect you if your arrangements have most or all of the following features:

  • A healthcare centre operator provides you with fully equipped consulting rooms, administrative services, clerical staff and facilities as necessary for you to provide healthcare services. The agreements entered into typically state that there is no employment relationship between you and the operator.
  • In return for these facilities and services, you are required to pay the operator an agreed percentage of the receipts for the healthcare services you provide.
  • You are required to provide healthcare services from the healthcare centre for an agreed minimum period of time, minimum weekly working hours and working patterns.
  • You are required to use your best endeavours to grow and promote the interests of the healthcare centre.
  • The operator pays you a lump sum
    • it is described as being consideration for a restraint imposed, for goodwill, for other terms or conditions, or for a combination of the three
    • the payment is ordinarily made when you enter into the agreement or start to provide healthcare services to patients from the healthcare centre (whichever is the later) or whenever the agreements relating to the provision of healthcare services are renewed.

Whilst these are common features, any other arrangements that relate to a lump sum payment for your ongoing provision of healthcare services from a medical centre may still be of concern to the ATO.

If you are considering any arrangements that relate to a lump sum payment for commencing or providing ongoing healthcare services, you should note that the ATO:

  • have concerns with those payments being mistakenly treated as capital gains
  • are looking closely at these arrangements to determine if they are compliant with income tax laws and whether the anti-avoidance provisions may apply.

The ATO are aware that some practitioners are using a private ruling that was issued to another taxpayer:

  • You can only rely on a private ruling if you applied for it.
  • From 2013, the ATO have consistently issued private rulings on these or similar arrangements treating the whole of the lump sum payment as assessable ordinary income.

If you think this may affect you, we can help you work out what you need to do.  Call Stellar Accounts on 07 3359 0014.

 

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Doctor’s deductions
doctors

 

Doctors – is your Accountant Claiming all the

Deductions You are entitled to?

Work-related self-education

Work-related self-education expenses are a key deduction for Doctors.  It is important that you have a system in place for tracking all your education costs, including

  • textbooks
  • materials
  • course/seminar fees
  • home-office computers and furniture for study
  • photocopying costs
  • student services fees, and
  • course-attendance-travel costs.

 

Other work-related expenses

Other work-related expenses cover many types of expenses that you incur in the process of earning your assessable income.

This might include:

  • purchasing a briefcase
  • buying a stethoscope and other equipment
  • phone and internet expenses
  • travel and accommodation costs for attending a conference
  • membership fees for professional associations
  • journal subscription fees; and
  • insurance and medical registration fees

Remember, when claiming a work-related expense, you must have already paid for it yourself and not been reimbursed by your employer for the cost.

 

Home-based work expenses

As medical practitioner, if you work from home at times, you might be able to claim for expenses such as:

  • using your computer,
  • phone, and
  • internet for work purposes.

Heating, cooling, lighting, office-equipment depreciation, and at-home professional library could all be tax deductible expense.

However, you can only claim for the portion of the expense that’s used for work purposes.

 

Vehicle Expenses

Travel costs you may be able to claim can include:

  • travel between hospitals or medical centres for work.
  • travelling to do work in remote, rural, or interstate areas, and
  • travel for functions and events that are related to your work.

If you attend and present at a function or conference for example, you might be able to claim for everything from airfares, accommodation, meals and the cost of having conference materials printed out.

If you travelled partly for work and partly for personal reasons, you can only claim on the part that was for work purposes. Note that if your home is a base of employment in that you started your work at home and then travelled to a workplace in continuation of the work, you could claim for these travel expenses.

Maintain a logbook to ensure you can claim all vehicle expenses including:

  • Fuel
  • Registration
  • Insurance
  • Maintenance
  • Interest on car loan
  • Depreciation

In Summary

Speak to a professional to ensure you get all the deductions you are entitled to.

The most important tip is, if you purchased a good/service for work purposes, keep your receipts and discuss the ability to claim this as a deduction at income tax time.

At Stellar Accounts we are always looking for ways to minimise tax for our clients.

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Discretionary Trusts
Conceptual symbold home made from black and white hands isolated over white backgroundConceptual symbold home made from black and white hands isolated over white background

Discretionary Trusts – are they the new company?

 

Thinking you have outgrown your soletrader status? Looking to minimise your tax? Have you considered entering into a Family Trust structure?

The term family trust refers to a discretionary trust set up to hold a family’s assets or to conduct a family business. Generally, they are established for asset protection or tax purposes.

What is a Family Trust in Australia?

An Australian family trust:

  • is generally established by a family member for the benefit of members of the ‘family group’;
  • can be the subject of a family trust election which provides it with certain tax advantages, provided that the trust passes the family control test and makes distributions of trust income only to beneficiaries of the trust who are within the ‘family group’;
  • can assist in protecting the family group’s assets from the liabilities of one or more of the family members (for instance, in the event of a family member’s bankruptcy or insolvency);
  • provides a mechanism to pass family assets to future generations; and
  • can provide a means of accessing favourable taxation treatment by ensuring all family members use their income tax “tax-free thresholds”.

A family trust has many other potential benefits, including avoiding issues such as challenges to the will following a death of a senior member of the family.

Tax Implications

Companies are currently taxed at 28.5% from the first $.

Trusts on the other hand, are not taxed. Instead, the profits are distributed to beneficiaries of the trust and are then taxed at individual marginal tax rates – ie each beneficiary is entitled to the $18200 tax free threshold.

For example – a business ends the year with a 75000 profit –

Company – $75000 @ 28.5% = $21375

Trust with 3 beneficiaries – 75000/3 = $25000 is distributed to each beneficiary resulting in them paying $1292 each in tax – a saving of $17499 in tax.

Yes – this is a simplistic view of a basic trust – and yes – there are rules around taxing of minors etc – but it is definitely something to consider when your business starts to grow bigger and bigger.

Call Stellar Accounts today for advice and assistance on the best business structure to suit your needs.

 

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The Private Practice – Courses in 2016
February 17, 2016
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The Private Practice prepares doctors for the challenge of establishing and managing a successful medical practice that supports their desired lifestyle. For more information on the courses run by the Private Practice go to:
http://theprivatepractice.com.au/programs

1

The Private Practice ‘Comprehensive’

DATES:

SYDNEY
Fri 29 April – Sun 1 May 2016

MELBOURNE
Fri 29 June – Sun 31 July 2016

BRISBANE dates to be announced

COURSE TIMES
Fri: 8:30am – 5:30pm
Sat: 8:30am – 5:30pm
Sun: 8:30am – 3:30pm

VENUE
SYDNEY
Sheraton on the Park,
161 Elizabeth St,
Sydney

MELBOURNE
Pullman On The Park
192 Wellington Parade
East Melbourne

FEES
Standard $2,145 (inc gst)
10% EARLY BIRD DISCOUNT For registration before 1 March 2016 using promotion code TPPCD10

PARTNERS
Accompanying spouses and partners are welcome and we offer a 25% discount on registration fees to members of the Australian Doctors Spouse Network (click on link for membership details.)
Contact Steven Macarounas for discount promotion code

SOCIAL PROGRAM
Details to be announced

ACCOMMODATION
SYDNEY
Preferred rates available, contact enquiries@theprivatepractice.com.au

MELBOURNE
Contact the Pullman reservations on 03 9419 2000 and quote the Private Practice for your group accommodation discount.

FURTHER INFORMATION
Please contact Steven Macarounas,
Course Director on (02) 9362 5050 or
steven.macarounas@fintuition.com.au
Course Outline
The Private Practice Comprehensive aims to prepare delegates for the challenges involved with establishing and managing successful medical practices. The course also provides training on the action, processes and habits required to achieve and maintain your desired lifestyle.

Topics
The following topics will be discussed over the 3 days. All presenters are industry leading professionals in their area of expertise.

From Effective to Successful
The role that ‘sound’ business and financial management plays in achieving practice and lifestyle goals.

Starting with the End in Mind
Understanding the mind-set required, as well as the practice development and operation strategies needed, to build a business that will have sale-able value.

Practice Set-up
A checklist and action plan for assessing your options with respect to buying in to or setting up your practice, and managing the process to fruition.

Practice Management and the Role of the Practice Manager
A good practice manager is an invaluable asset, particularly during the period of practice set-up and establishment, but what exactly should this all – important role encompass, and how do you find and train the ideal candidate?

Medical Practice Business Planning
The theory and tools for providing structure and systems for project and people management.

Medicare and Medical Billing
How the system works and how can you optimise the results for your practice.

Tax, Accounting and Business Structures
Choosing an appropriate financial and business structure, accounting and taxation basics, complying with legislation, case studies and current hot topics.

Medico-Legal Risk Management
Risks in practice, claims experience, tools to assess risk, strategies to manage risk, managing the risks of others, professional indemnity for the practitioner and the practice, choosing the right type and level of cover.

Personal Risk Management
‘Stuff’ happens! Why and how to design and implement your own personal and family long-term ‘safety net’ for protection against unforeseen events.

Wealth Creation and Lifestyle Planning
Making it and keeping it. Money Do’s and Don’ts, smart debt management, understanding investments, understanding legislation, choosing the right team to work with.

Banking and Finance
Practice, investment and personal finance products and strategy for the healthcare professional.

Medical Practice Information Technology
Maximising practice and personal efficiency through smart adoption of technology and strategy.

Asset Protection and Estate Planning
The use of family trusts and other mechanisms to help protect your personal assets from claim, plus proper planning to minimise adverse tax effects for beneficiaries.

Medical Practice Marketing
Marketing communicates your promise – what differentiates yours from every other practice – but it also focuses on the way your practice delivers that promise: branding, generating referrals, the role of education, websites, internet, social media, patient experience management and much more . . .

Practice Design & Construction
Understanding the importance of design on patient/customer attraction and satisfaction as well as efficient work-flow.

 

Key Features

CPD Point Entitlement
Easily accessible, practical information you can use
3 days of intensive lecture style and workshop presentations by leading experts with a medical focus
Completion of needs analysis and action plans
Course workbook and resource library
Networking social functions
Morning Tea, Lunch & Afternoon Tea throughout
Accommodation organised at discounted group rates

 

 

                     The Private Practice registration discount promotion code for ADSN Members:

                          PROMO CODE: TPPADSN23

 

Our Network and the New Year
January 15, 2016
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freindship

snow

I’m sitting here in freezing in Cincinnati, Ohio. Weather app says -12. That’s freakin’ cold! School was delayed by 2 hours today because of severe temperatures. This fellowship we are on has been such an adventure. As it winds down (we have 5 months left), I have begun to appreciate so much more about the area we live in. I’m realising that the next move back to Australia will be the last intercity/interstate/international move we make. We will settle down and try to put down our family roots. This training journey has been quite the ride.

So this month while I’ve been lighting fires, watching the snow fall, and getting hit by snowballs, I’ve been contemplating the New Year, resolutions, the passing of time and changing seasons. Next year the youngest of my 3 kids will start kindergarten and Niall will be working in private practice. A new season of my life will begin. I’m not sure what it means, or what it will bring, but I’m excited.

When Amanda and I started ADSN 3 years ago, (actually we went through a couple of name changes before it became ADSN- that’s another story!) we had a simple goal. We wanted to connect the thousands of spouses that were on this journey with us. Before ADSN, I would move to a new city and spend months fumbling my way around, attempting to make friends, looking for things to do. I would look at these huge hospitals full of doctors and think to myself- Where do all the spouses hide? What are they doing right now?

ADSN was certainly an answer to that question. We’ve connected spouses from all specialties, backgrounds, and walks of life. The craziest part of this journey is seeing what an amazing, diverse, skilled, and passionate group of people are going through life married to medicine. Most of us are not doctors ourselves but will spend the rest of our lives tied to a person who takes care of strangers. They will work long hours, they will study forever, they will be called away from us during important family events, and they will lose sleep over their patients. We will attempt to be their rock. We will love and support them even when we feel like screaming WHAT ABOUT ME?!!!!

Now what? Is that it? Is our network just a place where we can come when we have a question about accountants or accommodation or a place we come to bitch and moan about moving again? I hope not.

WHAT IF…
We became a team. We cared hard for each other. We banded together. We turned to each other in our darkest moments. We listened to each other with real compassion. We tried really hard to enjoy the journey we are on. We reached out and created community. We fostered lifelong friendships. We became mentors and mentees. We became a force for good in our communities.

My dream for 2016 and beyond is that this little network becomes more. I want to support you and I want you to support me. So where do we go from here? I don’t really know. Can we do this? Can the spouses of Australian and New Zealand doctors make a difference? I know we can. A little cheesy maybe, but I love and care about all of you. I thank you for showing me that I’m not alone and that even when it’s hard, it’s possible.
Kenna

Share Your Journey! Spouse Q & A
October 14, 2015
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keep-calm-we-re-all-in-this-together-7

Spouse Q & A

From time to time, we share a spouse's journey on our website to encourage the rest of us. We'd love to hear from you and share your experiences with the Network. You can answer as much or as little as you like. Thanks in advance!
  • Tell us about your family
  • This will be seen and used by ADSN admins only.
Resources for Medical Families Worldwide
October 9, 2015
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resoureces-help

When I married my husband 12 years ago all I knew about the medical journey was…well nothing.  I was in the United States Navy and non medical.  He was a year out from medical school and had just completed his intern year. After I finished my commitment to the Navy in Japan, we headed to Sydney to continue his medical training.  Every milestone, every hurdle was new to me. How I WISH I had had some resources to help me understand the road we were on.  Years later the Australian Doctor’s Spouse Network was created.  It wasn’t until the ADSN project was well underway that I suddenly began stumbling upon different resources that are available to medical families. I want to pass on this information to you. Your family is not alone on this journey.

DoctorSwap– Rental Properties for training doctors in Australia.

Australian Medical Benevolent Societies-  Medical benevolent associations are independent organisations that provide assistance to medical practitioners in times of need. They offer limited financial assistance and some may also offer counselling support or information about other services and organisations that may be able to help medical practitioners in need. Some states offer services to spouses. Check your local association.

AMA Alliance– The “Volunteer Voice for Physician Families” in the USA.  Would you believe they’ve been around for nearly 100 years?! With chapters all over the US, they offer support, networking, and volunteer opportunities for medical spouses and families.

Kim Blackham, LMFT– A marriage and family therapist, her passion is to see the stigma of medical marriage changed. She helps medical couples create the relationships they’ve always wanted. Lot’s of great info at her website. She also hosts Medical Marriage Retreats!

Doctor’s Health Fund– I really don’t know much about them except that they cater specifically for Australian Doctor’s and their families. Health insurance, travel insurance etc.  If any one uses them I’d love to know more.

The Private Practice– Helping doctors with ‘the business of being in business’…whether starting-out, established, or planning a successful retirement, The Private Practice can help you gain efficiencies in your business, financial and personal life. I have attended these workshops and HIGHLY recommend them for spouses!

Lives Of Doctors Wives Facebook Group- A USA based private Facebook group with upwards of 4,000 members. For female spouses only.  I joined this group before heading to the US on fellowship and it gave me much insight into the American medical system and the struggles of being an American medical spouse.

Lives of Doctors’ Wives Foundation– This website is a spin off from the Facebook group.  They have some cool programs where senior wives can donate gifts to struggling training families.  They also host a yearly meetup.

Resident Spouse Associations- Many US teaching hospitals support and fund a RSA.  They are all different and not affiliated with each other.  They usually host resident and fellow spouse meetups, book clubs, kids activities and more.

Specialty Specific Facebook groups- It’s true.  I am in a ENT spouse group. We organised a meetup at the big US Academy meeting and it was awesome. If you want to know if your specialty has a spouse group let me know.

Doctor’s Eyes Only Resources for doctor’s and their spouses on money, marriage and life. A book and over 100 podcast episodes available on iTunes.  I haven’t read the book but have listened to a number of their podcasts. Titles like “The Myth of the Rich Doctor”, “Kids and Affluence” and “When She Wears the Scrubs”.

Side by Side– an initiative of the Christian Medical and Dental Association in the USA.  They host Bible Study groups for spouses all over America.

If I have missed anything please let me know. I would love to see this list grow and grow!

7 with David Hazlewood
October 5, 2015
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DavidHazlewoodName: David Hazlewood
Hometown: Sydney
Occupation: Wealth Manager – I help successful medical specialists and their families make smart decisions with their money.
Family Profile: Married to Jenn with two daughters (Savannah 8 & Eliza 6), a dog, cat and two chickens
What book are you currently reading?
I’m sure you won’t be surprised that much of my reading is focussed on business. There are three books that I am reading at present:

  • The Opposite of Spoiled: Raising Kids Who are Grounded, Generous and Smart about Money
  • Happy Money: The New Science of Smarter Spending
  • Small Giants: Companies that Choose to Be Great Instead of Big

On a recent holiday I did get some time to indulge though, and loved re-reading To Kill a Mockingbird.

What is something that most people are surprised to find out about you?
One of the things I spend a lot of time talking about professionally is risk, and managing risk. So many people are surprised to find out that I love riding motorbikes. I don’t get much of a chance to ride for pleasure lately but have had some fantastic trips on bikes – the most memorable would have been riding a Harley from LA up the Pacific Coast Highway to San Francisco, out to Yosemite National Park then through Death Valley to Las Vegas.

You have just released the eBook “Clinical Trials”. How did you come to write the book?
It goes back to when my wife Jenn was pregnant with Savannah. About halfway through the pregnancy our Obstetrician told us that he couldn’t deliver our baby – he had developed a heart condition and his Cardiologist had told him he could no longer deliver babies. I remember thinking how devastating that must have been after all of the time and effort he put into his career, but I also worried about his and his family’s financial well-being – after all, there is not generally much call for an Obstetrician who can’t do deliveries. I wanted to be able to do something for him and people like him to ensure that if something like that happened to them they would be ok. This book is my attempt to help more people than I can help directly through my practice.

Can you briefly describe what the book is about?
The book looks at the current state of the medical profession and the people who work within it. We start with an overview of conditions and review details such as working hours, holidays and income, including details of how earnings change over time. This is based on information collected from over 6,000 Australian Doctors, both Specialists and GPs.
We then move on to explore the financial issues and difficulties faced by doctors and their families, and the broader issues of well-being and work-life balance.
Finally we look at how the profession has changed and how it might change in the future, and explore the impact that this might have on the doctors working within it.

In the book you note that “Spouses (both male and female) are becoming more central to operational and strategic issues relating to family wealth and/or business”, why do you think that is?
Part of it I think is that people are generally more educated than previous generations, and the division of labour in families no longer occurs along traditional stereotypical lines but is more along the lines of interests and expertise. For instance in my household I do most of the cooking because it is something that I love doing, whereas my mother always did that at home.
In terms of non-medical spouses increasingly managing the family wealth this is certainly a factor. But I think it also comes down to practicality and levels of interest. Given the professional demands on the time of medical professionals, if their spouse can manage these issues it allows them to spend their time outside of work in other areas, be it family or leisure. There are also many people who are just not interested in money and finance, so if their spouse has more interest or expertise in this area it is more appropriate to let them handle it as it will probably be done better.

What is the biggest financial mistake young medical families make when starting out?
Probably one of the biggest is not planning – but then I would say that.
What I mean by this is that once training is complete and you start working and earning there is a real acceleration in income. Having struggled on little money for so long there is a danger of becoming like the starving person who is offered food and eats so much they make themselves sick. There is no doubt that you need to reward yourself and your family for having survived the training process, but if overdone, this can have long term financial implications that can prevent you getting the things you really want. Having a plan provides a framework to assist in making these sorts of decisions, plus provides confidence that making such trade-offs will be rewarded in the longer term.

Why should ADSN members read “Clinical Trials”?
Doctors and their families have invested considerably in a career in medicine and will continue to do so throughout their working life. There are significant professional and financial rewards available to those who do well, but these are not without risk. It is important to invest some time considering these issues, and how you will manage them now and into the future. “Clinical Trials” is a good starting point on this journey. In the words of an anaesthetist who read it:
‘You are absolutely correct in your observation that we spend so much time getting there, that little energy is spent working out an exit strategy…a timely reminder to get our shit together.’

7 with Tiffany Auvinen
September 1, 2015
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tiffheadshotName: Tiffany Auvinen
Hometown: Woodman’s Point, New Brunswick Canada
Occupation: Mompreneur
Family Profile: I met my charismatic hubby 14 years ago while he was in residency and I was studying PR and marketing. Now we have two children and Dr. C is a busy ENT and head and neck cancer surgeon, and we also own www.nexgenhearing.com and you can get a free online hearing test!

What book are you currently reading? Blogs like yours.

What is something that most people are surprised to find out about you? I was on CTV’s Owl TV science show as a child.

Why did you create the Doctor’s Wives Living Online Magazine? I wanted to create an innovative online company while I was busy chasing my babies while also continuously learning and helping women all over the world.

What type of content does the magazine have? You can read advice on how to deal with your Type A partner, how to choose the best real estate, get recipes as well as learn about which resorts are the best for your family. Get rich with wisdom!

Many Australian doctors travel to Canada for Fellowship, what one piece of advice would you give to their spouses? Canadians are very humble and do not boast. Canadians put their families first and value nature and the simple things in life.

What is the best thing about running an online magazine? Being creative and meeting new people every week. I also love that I can do the work if I’m on a family vacation or at the kids’ activities. I love multi-tasking!

Have you been to Australia? 
I have never been to Australia, but I hope to take my family when my children are teens. I’m very happy in my life right now and truly enjoy Disneyland, so I would love to go there every year!