Sessional VMO vs Fee for Service VMO Contracts

Many VMO Doctors receive superannuation contributions from the hospital as part of their VMO arrangements.

Most are aware that maximising their superannuation contributions can assist in reducing their income tax liability.

However, if more than 10% of your assessable income is from an ‘employment type’ source, you can’t get a tax deduction for these personal super contributions because you won’t be considered to be primarily self-employed.

And there’s the trap.

Sessional VMO Income is considered ‘employment type’ income for superannuation purposes. Fee for Service VMO Contracts are not.
So doctors with Sessional VMO contracts will only get a tax deduction for extra personal superannuation contributions if they satisfy the ‘10% test.’

If your Sessional VMO income is greater than 10% of your assessable income, you’ll need to consider other arrangements to do this.

Want to know more? Contact our iMEDSuper team today!