Commercial Property as a Medical Centre — Structure and Strategy

Many doctors and practice groups choose to own the commercial property their clinic operates from, rather than lease it. Done well, this can build a valuable long-term asset alongside the practice itself. Done without proper structuring, it can create unnecessary tax cost, liability exposure, and complications when partners or doctors change over time.

Common Ways Doctors Hold Medical Centre Property

• Personally or jointly, with the property leased back to the practice entity
• Through a dedicated property trust or unit trust separate from the practice
• Within a self-managed super fund (SMSF), subject to strict superannuation rules
• Through a company structure, often alongside other practice-owning doctors

Key Considerations Before You Buy

• Whether an SMSF purchase is appropriate, including borrowing rules and related-party lease conditions
• GST treatment on the purchase, lease, and eventual sale of the property
• Stamp duty and land tax implications depending on the holding structure
• How multiple doctors will co-own the property and what happens on exit or sale
• CGT and depreciation planning over the life of the property

Related Resources

• Back to Accounting and Tax Services for Doctors
• Practice Entity Structuring for Doctors
• CGT on the Sale of a Medical Practice
• Finance for Medical Professionals

Thinking about buying the property your practice operates from? Speak with A One Accountants before you sign a contract — the structure you choose now shapes your tax position for decades.