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For associate dentists and practice owners

Tax and financial decisions for dentists

From your first associate agreement to a practice purchase, the way you earn, borrow and hold assets affects what you keep and what you can do next. Verity helps dentists assess the tax, structure, finance and long-term consequences before committing.

Discuss your next decisionConsidering practice ownership?

Brisbane-based, working with dentists across Australia.

Where dentists seek clarity

The financial decisions behind a dental career

The most useful advice often comes when something is about to change—not after the decision has already been made.

01Beginning associate dentistryUnderstand how your agreement operates, who receives patient fees, what expenses and GST treatment may apply, and how to plan tax and super obligations. An ABN alone does not determine employment or contractor status.Tax advice →
02Buying a home or investment propertyConsider how your income evidence, existing liabilities, tax returns and borrowing plans fit together before making changes to entities or financial commitments.
03Buying into or establishing a practiceTest the purchase price, ownership rights, sustainable profits, debt service and the tax and legal consequences before signing.Practice buy-in advice →04Growing or selling a practiceNew chairs, clinicians, premises and future ownership changes bring cashflow, tax, payroll and succession questions. Assess what the change means for both the business and your personal finances.Medical practice accounting →

What matters when a dentist's circumstances change

Associate arrangements and personal services income

Dentists may work as employees, independent practitioners or through other arrangements. The label in an agreement does not settle the tax or employment position. We consider who provides services to patients, who is entitled to the fees, how practice or facility charges operate, and the relevant GST, superannuation and income tax consequences.

Income mainly derived from your own professional skill may be personal services income. A company or trust does not automatically reduce tax on that income; the PSI provisions and other integrity rules need to be considered. See our Tax Advice page.

Queensland dental practice payroll tax

The Queensland amnesty for qualifying payments to contracted dentists ended on 30 June 2025. From 1 July 2025, dental clinics must meet their ordinary payroll tax obligations, including for relevant contractor payments where no exemption applies. The separate GP wages exemption does not extend to dentists simply because they work in a medical or dental practice.

Taxability depends on the facts, applicable contract provisions, exemptions and relevant thresholds. For official guidance, see the Queensland Revenue Office dental amnesty and ongoing obligations and its relevant contracts guidance.

Borrowing for a home, equipment or a practice

A lender may assess employment, contracting, entity income and business earnings differently. Evidence requirements and any professional concessions vary between lenders. We consider finance alongside projected tax, cashflow, ownership and other debts; credit assistance is provided under the applicable separate engagement.

Building financial security outside the practice

Clinical income and business ownership can create concentrated risks. Review how emergency reserves, debt reduction, super, diversified investments and insurance might support your family and provide options beyond working more hours. Personal financial advice is separately scoped and provided under the relevant authorisations. Learn more about financial advice.

How Verity works with you

We begin with the actual decision and agree a proportionate scope, rather than assuming every dentist needs a new structure or a comprehensive financial plan.

  1. Step 1
    Identify the decision and facts
    Discuss your associate or practice arrangements, tax position, debts, cashflow and what you're considering next.
  2. Step 2
    Test the options and trade-offs
    Within the agreed scope, assess the tax, financial and funding implications, and identify where transaction-specific legal or valuation work is needed.
  3. Step 3
    Agree what happens next
    Set out the next actions and, where appropriate, coordinate separately engaged tax, accounting, credit or financial advice services. Fees and deliverables are agreed before work begins.

Tax-led advice for dentists

Verity Advisory is led by Tommy Li, Chartered Accountant, Registered Tax Agent and authorised financial adviser. Our starting point is to understand the tax and business arrangements behind your income, assets and any practice interest. We then consider how a proposed decision affects your ability to borrow, manage cash and build longer-term financial security.

Advice about tax and accounting, financial products and credit assistance is provided through the applicable separate engagements and authorisations. We work alongside your solicitor or other specialists where needed. Learn more about Verity.

Questions dentists ask us

Should I use a company or trust as an associate dentist?

Not automatically. Clinical income mainly earned through personal effort may be personal services income, and other integrity rules can apply. A structure can have genuine business or investment purposes, but the legal arrangements, tax consequences and ongoing costs need to be considered first.

Does Queensland payroll tax apply to contracted dentists?

Payments under relevant contracts can be taxable unless an exemption applies. Queensland's amnesty for eligible contracted dentist payments ended on 30 June 2025. Dental clinics should assess their contractual and actual arrangements against the current rules.

Can you help me assess finance for a practice purchase or fit-out?

Yes. We can discuss the financing implications and, where appropriate, scope credit assistance separately. Borrowing eligibility depends on lender policy, business financials, security, cashflow and your overall circumstances.

What should I check before buying into a dental practice?

Assess the price and sustainable earnings, what interest or assets you are acquiring, future obligations, lease and equipment commitments, partner decision-making, exit rights and funding. Our Practice Buy-in page describes these questions in more detail. Legal and formal valuation work should be undertaken by suitable specialists.

Can you assist with tax and accounting if I already own a dental practice?

Yes, subject to an agreed scope. This may include tax compliance, reporting, structure reviews and financial analysis for practice decisions. Bookkeeping and management reporting responsibilities and frequency are agreed as part of the engagement.

Do you advise dentists outside Brisbane?

Yes. We are based in Bowen Hills, Brisbane, and can meet remotely with dentists elsewhere in Australia.

What is your next dental career decision?

Whether you're reviewing an associate agreement, borrowing for a home, buying into a practice or considering an exit, start with the question that matters most. We'll discuss how any further work should be scoped.

Book an introductory conversation