Client Profile
Medical practitioner operating a growing private practice and intending to purchase the clinic premises (freehold).
Challenge
The client was running their medical practice under a simple structure and planned to acquire the freehold property personally. Without proper advice, this would have resulted in:
- Higher ongoing income tax
- Limited asset protection
- Inefficient use of rent, depreciation, and interest deductions
- The client wanted to reduce tax legally, protect assets, and create long-term wealth.
Strategy
We designed a holistic business and property structure tailored to medical professionals:
Established a separate operating entity for the medical practice
Structured the freehold property ownership in a different entity, allowing the practice to pay market rent
Ensured the arrangement complied with medical service and PSI rules
Optimised tax deductions, including rent, interest, depreciation, and outgoings
Planned income flows to achieve tax efficiency while maintaining compliance
Outcome
The medical practice operated efficiently with reduced taxable income
Rental payments created a tax-effective income stream for the property-holding entity
The client achieved significant ongoing tax savings while building equity in the freehold property
Improved asset protection and long-term wealth planning were established
Key Takeaway
For medical practitioners, separating the practice operations from property ownership can significantly improve tax outcomes and asset protection when structured correctly.