Accountant for Allied Health Practices in Melbourne
For physios, psychologists, OTs, dietitians, podiatrists, chiros and dental practices. We look after tax, payroll tax on contractors, GST and practice structure so you can focus on patients.
The short answer
The biggest tax risk for allied health clinics in Victoria is payroll tax on contractor practitioners. The SRO can treat payments to contractors as wages, and unlike GPs, there is no special exemption for allied health. We review your agreements and set up your practice to manage this risk.
What we help with
Payroll tax review
We review service agreements and cash flows against the Victorian contractor rules and the SRO’s medical centres ruling.
Practice structure
Sole trader, company, trust or service entity. Set up so it holds up under ATO guidance.
GST
Most health services are GST-free, but products, room hire and some services aren’t. We get the split right.
Contractor practitioners
Tax returns, deductions, PSI and super for practitioners working across clinics.
Buying or starting a clinic
Budgets, finance, fit-out depreciation and valuing goodwill.
Bookkeeping & payroll
Xero linked to your practice software, single touch payroll and super.
Payroll tax and contractors
In Victoria, payroll tax applies when your total wages pass $1 million a year (from 1 July 2025). The rate is 4.85%. Payments to contractors can count as wages under the contractor provisions.
- The source of the money doesn’t change this. Fees paid by patients into your account can still count.
- Exemptions exist but they’re narrow, such as short engagements or practitioners who also serve the public at large.
- Back taxes can reach several years with interest and penalties.
- The GP bulk-billing exemption doesn’t cover allied health, dentists or specialists.
Why practitioners choose us
- We already work with medical and health practices across Melbourne.
- Fixed fees and a partner you can call.
- Offices in Ascot Vale and Mount Waverley, and video meetings that suit clinic hours.
Frequently asked questions
Do I pay payroll tax on my contractor physios or psychologists?
Possibly. In Victoria, payments to contractors can be treated as wages under the contractor provisions, depending on your agreements and how money flows. We review your setup and tell you the risk.
Does the GP payroll tax exemption cover allied health?
No. The Victorian exemption from 1 July 2025 covers fully funded GP consultations, such as bulk-billed services. Allied health, dentists and specialists are not covered.
Are allied health services GST-free?
Most are, if the provider is a recognised professional and the service is generally accepted as necessary treatment. Products, cosmetic services and room hire can attract GST.
Should I use a service trust or company?
A service entity can work if it’s set up properly and charges market rates. The ATO has guidance on these arrangements. We’ll check whether one suits you.
I work across several clinics as a contractor. What can I claim?
Registration fees, insurance, CPD, equipment, travel between clinics and some home office costs. The PSI rules may also apply. We’ll check.
Do you help NDIS providers?
Yes. We help with bookkeeping, GST on NDIS supports and cash flow from NDIS payments.