--- title: Should you buy your next car through your medical practice? description: Before buying a car, align ownership, finance and actual use. Key questions for doctors and dentists about records, deductions and FBT. image: https://www.verityadvisory.com.au/hubfs/Image%20of%20handsome%20young%20businessman%20in%20suit%20standing%20near%20car.jpeg --- [Skip to content](https://www.verityadvisory.com.au/insights/buying-a-car-as-a-doctor-ownership-records-and-ato-data-matching#main) [![Verity Advisory](https://www.verityadvisory.com.au/hs-fs/hubfs/Brand%20Logo%20etc/2.png?width=120&height=48&name=2.png)](https://www.verityadvisory.com.au/) ☰ Menu Who We Help [GP Contractors](https://www.verityadvisory.com.au/doctors/gp-contractors/) [Practice Buy-ins](https://www.verityadvisory.com.au/doctors/practice-buy-in-advice/) [Dentists](https://www.verityadvisory.com.au/dentists/) Services [Tax Advice & Structure Reviews](https://www.verityadvisory.com.au/what-we-do/tax-advice/) [Medical Practice Accounting](https://www.verityadvisory.com.au/what-we-do/medical-accounting/) [Financial Advice](https://www.verityadvisory.com.au/what-we-do/financial-advice/) [Insights](https://www.verityadvisory.com.au/insights/) [About](https://www.verityadvisory.com.au/about/) [Contact](https://www.verityadvisory.com.au/contact/) [Client portal](https://clients.karbonhq.com/us2/21yyHN8dJMd6/login)[Doctor Financial Scorecard](https://doctor-financial-scorecard.scoreapp.com/) [Insights](https://www.verityadvisory.com.au/insights) › [Earnings & Tax](https://www.verityadvisory.com.au/insights/tag/earnings-tax) # Should you buy your next car through your medical practice? ![](https://www.verityadvisory.com.au/hs-fs/hubfs/72ppi-TommyLi-0016475-top.jpg?width=48&height=48&name=72ppi-TommyLi-0016475-top.jpg) Tommy Li CA · Published 29 October 2026 ![](https://www.verityadvisory.com.au/hs-fs/hubfs/Image%20of%20handsome%20young%20businessman%20in%20suit%20standing%20near%20car.jpeg?width=880&height=587&name=Image%20of%20handsome%20young%20businessman%20in%20suit%20standing%20near%20car.jpeg) In this article Before asking whether to buy a car through your practice, establish who will own it, who will use it and what the journeys are for. Those facts matter more than describing it as a business vehicle. ## Why the paperwork matters The ATO obtains state and territory vehicle registry information for specified new registrations and transfers where the purchase price or market value is at least $10,000. It compares that information with its other records to identify potential compliance issues. Registration is therefore part of the evidence trail; it does not determine your deduction. ## Which trips can you claim? Ordinary travel between home and a regular workplace is generally private. Qualifying travel between workplaces may be deductible. For doctors working across clinics, hospitals and locum placements, the circumstances of each journey matter; having several work locations does not automatically make every trip deductible. A practical starting point is to describe a normal fortnight of travel. Separate commuting, travel during work, journeys between jobs and family use. Keep the records required for the method applicable to your circumstances. ## Company ownership brings another set of questions A car held by an employer and available for an employee’s private use can create a car fringe benefit. Garaging it at the employee’s home can count as availability, even without actual private driving. Exemptions have conditions and should be checked for the particular vehicle and arrangement. Do not assume the same analysis applies to every trust beneficiary or shareholder. Establish the capacity in which the benefit is provided before deciding the tax treatment. ## Compare the whole cost before signing For a doctor replacing a family car or a dentist buying through a practice, we suggest comparing: - The proposed legal owner, borrower and invoice recipient. - The actual work and private use, supported by appropriate records. - Purchase price, finance costs, running costs and expected resale value. - The applicable deduction, GST and fringe benefits tax treatment. - The effect on cash reserves and any planned home loan or practice purchase. Keep the purchase agreement, invoice, finance documents, payment evidence and vehicle identifiers together. If money moves between you and your entity, document why and how it is recorded. ## Before you buy A tax benefit should be one input into the purchase, alongside affordability and how you will actually use the car. Send Verity the proposed ownership and finance details before committing so we can identify the questions worth resolving. ![Tommy Li](https://www.verityadvisory.com.au/hs-fs/hubfs/72ppi-TommyLi-0016475-top.jpg?width=76&height=76&name=72ppi-TommyLi-0016475-top.jpg) Tommy Li CA Founder and Principal Adviser, Verity Advisory · Registered Tax Agent · Authorised Representative No. 1261831 · Member, Chartered Accountants ANZ Tommy is a Chartered Accountant with 20+ years’ experience in accounting. He founded Verity Advisory to give doctors integrated advice at the financial decisions that matter most, bringing tax, borrowing and financial planning into one structured approach. [Connect with Tommy on LinkedIn →](https://www.linkedin.com/in/tommylica/) **General advice warning.** This article is general information and general advice only. It isn’t personal advice and doesn’t take into account your objectives, financial situation or needs, so consider whether it’s appropriate for you before acting. Where a financial product is discussed, obtain and read the relevant Product Disclosure Statement before making a decision. Before you decide A financial decision on your mind? Talk through your situation with Verity and identify what deserves attention before you commit. [Book a 15-minute call](https://www.verityadvisory.com.au/meetings/verityadvisory/15-min-phone-call) Self-check Doctor Financial Scorecard Not ready for a conversation? Take our three-minute self-check to identify financial areas worth reviewing. [Start the Scorecard →](https://doctor-financial-scorecard.scoreapp.com/) Monthly insights One curated email a month Practical insights on the financial decisions facing doctors and dentists. 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