Physiotherapists, chiropractors, psychologists, occupational therapists, dietitians and podiatrists tend to be excellent clinicians and reluctant business owners. We help allied health practitioners in Brisbane and beyond set up the right structure, understand contractor and payroll rules, grow a practice and keep the tax position tidy.
Most allied health businesses start the same way.
02Health practitioners face a specific tax issue.
03Allied health runs heavily on contractor arrangements, with practitioners paid a percentage of billings.
04The decisions that shape an allied health business are about capacity.
Most allied health businesses start the same way. A clinician leaves a practice, rents a room, and starts seeing their own patients. Within a couple of years there are two rooms, a receptionist, a second practitioner and a lease. The business has arrived, usually without anyone planning it.
Mark from Mark Pennington Physiotherapy said: "ASA have been amazing in simplifying my financial matters which allows me to make informed choices." That is the job in one sentence. Clinicians do not need more financial complexity. They need the complexity handled so they can decide clearly about the next hire, the next room or the next location.
We work with practices at every stage, from a sole practitioner choosing a structure to multi-site groups with dozens of clinicians, and we keep the explanations in plain English.
Health practitioners face a specific tax issue. Income earned mainly from your personal skill can be treated as personal services income under the ATO's current rules, which limits how it can be split or retained in a company. The structure has to be designed with those rules in mind, not around them.
As a practice grows and employs other clinicians, the picture changes. There is now a genuine business with its own goodwill, staff and systems, and a company or trust structure can be appropriate. Some practices use a separate service entity to own equipment, employ admin staff and provide rooms to practitioners. Done properly, this can protect assets and simplify the business. Done badly, it attracts attention.
We review structures for allied health owners and recommend what fits the facts. Where a practitioner is both a clinician and an employer, we make sure both roles are handled correctly.
Allied health runs heavily on contractor arrangements, with practitioners paid a percentage of billings. These arrangements are under scrutiny. The ATO and Fair Work look at the substance of the relationship, and superannuation can be payable to contractors who are paid mainly for their labour even when they invoice through an ABN.
We assess each arrangement, help practices document them properly and set up payroll so superannuation, withholding and leave are handled correctly where they apply. Getting this right protects the practice from back-payment claims and penalties and makes the business far more saleable later.
Billing complexity is another challenge. Medicare, private health funds, NDIS, workers compensation and third-party payers all pay on different terms. Our bookkeeping on Xero, with the right practice management integration, reconciles those streams so the BAS is accurate and the owner can see which services are profitable.
The decisions that shape an allied health business are about capacity. Another clinician means more revenue but also more wages, more rooms and more admin. A second location doubles the lease and the management load. Buying equipment on finance changes the cash flow for years.
We model these decisions before they are made. A cash flow forecast that reflects billing cycles and payer delays, a budget by practitioner or location, and a monthly management report that shows utilisation and margin give practice owners the confidence to grow without guessing. Our virtual CFO service provides this on an ongoing basis.
Brad from Manna Health, a health and wellness business, said: "Greg has been an absolute lifesaver when it comes to navigating complex international tax matters." Health businesses do not always stay simple or local, and we are set up for the ones that grow in unexpected directions.
Clinicians are busy and tend to leave tax to the last minute. We run planning conversations before the end of each financial year so that equipment purchases, superannuation contributions, distributions and timing decisions are made deliberately.
Later, there is the question of what the practice is worth and who takes it over. Practice sales to a larger group, a partner buy-in or a staged succession to a senior clinician all need valuation, structure and tax thought. We help owners prepare years in advance, so the practice is a business with a value, not just a job with a lease.
“Lauren has been absolutely fantastic in guiding us through the set-up of our Pty Ltd business.”
It depends on the stage of the practice. A solo clinician's income can fall under the ATO's personal services income rules, which limits the benefit of a company. Once the practice employs other clinicians and has its own goodwill, a company or trust structure often makes sense for asset protection and flexibility. We assess the facts and recommend accordingly.
A service entity is a separate business that provides rooms, equipment and administrative staff to practitioners for a fee. It can protect assets and separate the clinical and commercial sides of a practice. It is not for everyone, and the arrangement must be commercially realistic under the ATO's guidance. We assess whether it fits your practice.
Generally on its sustainable profit after a fair wage for the owner, adjusted for how dependent the practice is on the owner personally, the stability of the clinician team, the lease, referral sources and payer mix. A practice that runs without its founder is worth considerably more. We provide valuations for sales, buy-ins and succession planning.
Often, yes. Under the ATO's current rules, a contractor paid mainly for their personal labour can be treated as an employee for superannuation purposes even with an ABN and an invoice. The arrangement's substance matters more than its label. We review each contractor relationship and help you structure and document it correctly to avoid back-payment claims.
Yes. We set up Xero with the appropriate practice management integration so that billings, gap payments, bulk-billed items, health fund rebates, NDIS claims and workers compensation payments are reconciled against the bank. This keeps the BAS accurate, shows which services are actually profitable and reduces the admin load on your reception team.
