This is the most popular page on Austmedics.com. Please email email@example.com to get a tailored estimate of potential earnings. Or use our spreadsheet to calculate your earnings for a particular position.
The short answer is between $240,000 to $400,000 however for a 40 hour week with no OOH seeing 35 patients per day, you should be earning around $250,000-$300,000. Earning will be higher for a mixed billing practice. The major difference between the UK and Australia is the after tax earnings of a GP. There is little opportunity to reduce your tax bill in the UK, which means that your after tax income is reduced by 30-45%. It is not uncommon for GPs to pay as little as 30% tax on earnings. Saving between 15-20% off your UK tax bill, which translates to £30,000 to £45,000 less tax. Once Austmedics have placed you in a high earning position we then refer you to the best financial planning team to advise you.
Below is a PDF of a daily billing sheet. Female RCGP & RACGP with 2 months experience in Australia. Total daily billing of $2290.
The target daily billings in our experience that are achievable after 4 months should be around $2000 per day. Once you have learnt the system and deployed a number of billing strategies you should be able to bill at this level. The numbers look like this. $2000/day by 5 days by 46 weeks at 65%, gives $299,000. Prior to leaving for Australia Austmedics will provide a Medicare training pack which will enable you to maximise your earnings.
This high level of earning and low rates of tax result in a very high level of wealth creation.
Which ever speciality you have, you will find that the salary and general conditions contrast well with the contract available within the NHS. The lower cost of living means your work in Australia will be well rewarded both professionally and financially.
Australia has a shortage of medical staff particularly in rural and remote area. Given this shortage there are strong financial incentives used to attract doctors, with the highest rates paid for very remote areas. The remote areas may not suit everyone but offer a completely different experience and unique medical challenges that you wouldn’t have in the United Kingdom. It doesn’t mean that in order to achieve a well rewarded position you need to be 1000 miles from the nearest source of water!
In calculating earnings there as a number of important differences compared with the NHS:
- Most positions are as contractors. As a contractor you are responsible for your holiday and sick pay and pension arrangements.
- There are a number of legitimate ways to significantly increase your earnings, including management plan 30/60 ($200), review of plan ($200) and all medicals.
- All repeat prescriptions require a consultation, ie a short consultation is charged.
General Practitioner earnings in Australia are usually offered as a percentage of gross income generated. We appreciate that this can make it difficult to gauge potential income when no wage is offered. The formula for earnings is as follows: If you were earning 60% of Gross Fees Generated it would be worked out in the following way:
Private Billing Practice
160 patients per week (32/day) x $65.00 per consult x 60% x 48 weeks
plus 7 management plans per week 1400*.6*48 =
$339,000 per annum. (all figures are in AUD$)
£210,000 as a minimum. This calculation ignores additional charges for extra services. Earnings will be higher.
Home visits and nursing home visits are another way of increasing earnings substantially. The percentage would be 80-100% for these visits.
Percentage Rates offered to General Practitioners vary between 50% and 65%. Further variation in earnings depends on the amount of Bulk Billing a practice does and opportunity for ethical value adding services.
Bulk Billing is when the patient does not pay for the consult, rather the practice charges directly to Medicare (Australia’s universal health care system). This is the minimum consult charge – it is currently $36.70. Bulk Billing is usually the standard for Concession Card Holders.
Contrastingly, a non-bulk bill paying patient will pay a higher rate for their consultation, as is determined by the practice. The average rate is presently $65.00. The private patients can then make a claim from Medicare themselves, and will receive a partial reimbursement of $36.70.
The number of services offered in-house by individual practices allows them to ethically add value to each patient contact, thereby maximising each doctor’s income, without over servicing. This increases the average cash return per patient far above the standard consultation fee.
Austmedics would find and negotiate the best rate available.
Real Life Examples
These are real figures from 2010. We can give you more information about salaries if you wish to work in Australia.
Figure from a NSW Practice
GP1 $9800/week converts to 48weeks earnings of $470,000 £293,000
GP2 $7200/week converts to 48weeks earnings of $345000 £215,000
GP1 $310,000 3952patients 28 hours/week 6/52leave £193,000
The Australian financial year is from 1 July to 30 June. By 31 October each year all Australian taxpayers must complete a tax return. The Australian Taxation Office provides the TaxPack, a self-assessment system for each taxpayer to declare their income and allowances.
Every Australian resident who earns income from employment or investment must obtain a Tax File Number (TFN). You should apply for your TFN soon after arrival, either at one of the Tax offices, at Centrelink or online. Within 10-28 days you will receive your TFN. If you become employed prior to receiving your TFN, let your employer know that you’ve applied. Otherwise you will be taxed on a highest rate.
The Tax Office, in conjunction with the Department of Immigration and Citizenship (DIAC) has developed an online registration process that enables permanent migrants and temporary visitors to Australia, who have a visa that allows work rights or permanent migration, to apply for an individual tax file number (TFN) via the Internet on their web site. Go to ‘For Individuals’ and then ‘Apply for a Tax File Number.’
For those who plan on running their own business (this includes medical practitioners in private practice – such as GPs, and specialists), you will need to register for an Australian Business Number (ABN). If you plan to earn in excess of $50,000.00 in one financial year from your business, you also must register for the Goods and Services Tax (GST). Information about taxation obligations of a business and GST can be found on the Australian Taxation Office website in the ‘For Business’ section.