Accountants who understand medical practices
Service trusts, payroll tax on contractor doctors, practice purchases and the right structure, for GPs, specialists and allied health practices across Australia.
Service trusts and service entities
Many practices use a service entity to provide staff, premises and equipment to the doctors. It can work well, but the ATO expects the fees to be commercially realistic and properly documented.
Payroll tax on contractor doctors
State revenue offices have taken the view that payments to contractor doctors can be wages for payroll tax. The rules and any concessions differ by state and have changed recently, so arrangements need checking.
Buying into or selling a practice
Due diligence on billings and patient numbers, the right entity to buy through, and the tax on goodwill when you sell.
Structure and asset protection
Keeping the clinic building and your family wealth away from professional risk, with the CGT and stamp duty of any change worked out first.
Questions
Common questions from practice owners
General information only. Payroll tax rules differ by state; we check yours.
Do I need a service trust?›
Not always. A service entity can make sense for a practice with several doctors and shared staff and premises, but it adds cost and has to be run on commercial terms. We look at your billings, staff and plans before recommending one.
How much should a service entity charge the doctors?›
Enough to reflect the real cost of the services plus a commercially realistic mark-up, backed by a written agreement and records. The ATO publishes guidance on service arrangements, and we follow it.
Will we have to pay payroll tax on our contractor doctors?›
It depends on your state and how the arrangements work in practice. Several states have treated payments to contractor doctors as wages, and some have introduced concessions. We review your agreements and tell you where you stand.
Can you help me buy into a practice?›
Yes. We check the numbers, advise on the structure to buy through, and work with your lawyer on the agreement.
Talk to us about your practice
Confidential · No obligation · Registered tax agent 26173619