Are Lab Fees and Consumables Deductible for Dental Professionals?
- johnry8
- Sep 2, 2025
- 2 min read
Running a dental practice means juggling clinical work, compliance, payroll, equipment, and often a mountain of expenses. Misunderstanding what you can claim like lab fees or dental supplies can lead to overpaying your tax bill and higher stress at EOFY.
What Counts as a Deductible Expense?
The ATO allows you to claim expenses that are directly related to earning assessable income. For dental professionals, these commonly include:
Dental lab fees (e.g. prosthetics, crowns, ortho appliances)
Consumables (e.g. gloves, masks, syringes, composite materials)
Sterilisation products
Cleaning materials for treatment rooms
Bonus tip: Subscriptions to dental journals, industry memberships, and even uniforms with your clinic’s branding may also be claimable.
If the items are used for business purposes, they are generally deductible.
Best Practices for Claiming These Expenses
To ensure your deductions are accepted by the ATO:
Keep invoices and receipts of all purchases (your accounting software will have a receipt keeping system. (eg. Hubdoc for Xero)
Separate personal from business expenses if you're operating as a sole trader
Use accounting software (Xero, MYOB, QuickBooks etc) to track monthly expenses and flag deductible items
Work with a tax professional who understands the dental industries specific deductions
Do
Log every purchase related to clinical procedures
Check with your accountant if you're unsure
Set aside time each week or month to review expenses
Don’t
Claim personal use items (e.g., toothpaste for home use)
Mix business and personal finances
Wait until June to organise your receipts
What We See at Our Firm
In our work with dental clients, one of the common things we see is underclaiming supply costs. Whether you’re operating as a sol trader or with a team of hygienists, those gloves and bibs add up fast when they’re tax deductible. We've helped many dentists claim thousands in missed deductions just by correctly categorising these costs.
Not sure if you’re claiming everything you’re entitled to?