Remote medical practices: strategies to attract and retain staff

Attracting skilled doctors and nurses to join any healthcare practice is a challenge – let alone when that practice is in a remote location.

The government has long acknowledged this challenge, responding with a number of recent initiatives, including:

• The Workforce Incentive Program, which provides incentive payments to doctors working in rural areas.
• HELP debt reduction, with up to 100% of student debt waived depending on where and for how long a doctor commits to rural service.
• Increased rural bulk billing incentives, which is already having a positive effect on medical clinic valuations in regional areas.

In addition to those recently announced, there are two lesser-known initiatives that have been in place for decades and offer powerful incentives to attract and retain staff. 

These are the Remote Area Housing Benefit and the Remote Area Benefits Reduction provisions.

Remote Area Housing Benefit

Under the Remote Area Housing Benefit, employers in designated remote areas may include housing as part of an employee’s remuneration package. Normally, this type of arrangement would incur fringe benefits tax (FBT) – payable by the employer and often off-set by adjusting an employee’s salary package to account for the cost. 

Medical practices in remote areas are exempt from this tax, provided that:

• The employee lives in the same remote area where they work.
• The location meets the ATO definition of a remote area.
• The arrangement is at arm’s length and isn’t set up mainly to access the benefit.

There must also be a genuine need for the employer to provide the housing. This could be because of a lack of local housing, frequent relocations (i.e.: the employee often has to move for work), or it’s common industry practice to provide housing for free or below-market rent to employees. 

Leveraging this exemption means employees benefit from reliable housing that removes much of the stress of relocating to a remote area, while the employer gains a practical way to bring new staff into remote roles and reduce the financial burden that normally comes with providing accommodation.

Remote Area Benefits Reduction

Where the Remote Area Housing Benefit relates only to housing for employees, the Remote Area Benefits Reduction encompasses a wider range of benefits that remote medical clinics may wish to offer potential employees. 

This includes:

• Salary packaged rent payments – for a leased property in the employee’s name.
• The interest portion of mortgage repayments – for the employee’s usual remote residence.
• Loans – provided by the employer to help staff purchase a property in a remote area.
• Costs for fuel (gas, electricity or firewood) at the employee’s usual remote residence.
• Holiday travel for employees (and often their dependants) from the remote area to a non-remote area.

Normally, these would all attract fringe benefits tax. Under the Remote Area Benefits Reduction, remote employers may qualify for a 50% reduction in the taxable value. If the employer is a not-for-profit organisation, the tax advantages are even more significant. 

By using the Remote Area Benefits Reduction, employers can simplify salary packaging and reduce tax liabilities, and provide employees with benefits that make moving to and living in remote locations more appealing.

Choosing the right employee benefits for optimal outcomes

FBT exemptions can be complex – especially when it comes to determining who and what is eligible for certain benefits. 

However, failing to properly utilise these incentives could see your remote medical practice miss out on valuable ways to:

• save money
• attract and retain quality staff
• build an employer brand that people want to work for
• improve staff satisfaction and workplace stability

RSM’s advisers are experts in the tax implications of salary packaging decisions, and can help you determine the best way forward. 

We work closely with medical practice owners to structure benefits and incentives that engage and retain key staff, while protecting and strengthening the practice’s financial position.

To learn more, don't miss out our upcoming webinar with RSM's medical services team: 

Unlocking free housing: RAHB and FBT insights for medical employers and employees webinar. 

Date: Tuesday, 24 March 2026

Time: 12pm - 1pm AEDT/9am - 10am AWST 

Hosted by Young Hang & Thomas Leslie 

REGISTER NOW>>