For GP contractors
As a contractor GP you run a small business from someone else's rooms. No one withholds your tax, and in most arrangements no one pays your super or your leave. Verity Advisory helps Brisbane GPs set that up properly, with tax, borrowing and investments considered together.
Know what to do next, not just what you owe.
| Area | On a salary | As a contractor |
|---|---|---|
| Income tax | Withheld from each pay | You pay it yourself, in instalments |
| Super | Paid by your employer | Usually yours to arrange |
| Leave | Paid sick and annual leave | None, so time off is unpaid |
| GST | Not your concern | Register once turnover reaches $75,000 |
| Expenses | A narrow set of work deductions | Business deductions, including the service fee |
You go from a payslip to an ABN, a service agreement and tax you pay yourself. We set up your instalments, record keeping and super before the first quarter catches you out.
The service fee, who collects your billings and what happens when you leave all carry tax and cash flow consequences. We work through those with you, alongside your solicitor on the legal terms.
A lender reads contractor income differently from a salary, and a short ABN history can count against you. We work out what you can borrow and which lenders' policies suit medical practitioners.
Buying into the practice changes your tax, your borrowing and your risk at once. We test the price and the repayments before you commit.
Under most service agreements, patient fees are yours and you pay the clinic a fee for rooms, staff and administration. That makes you responsible for your own income tax instalments, for GST registration where it applies, and for your own super.
Income tax, superannuation, payroll tax and workplace law each use a different test for who is a contractor, so one arrangement can be treated differently under each. We read your agreement with all of them in mind.
Billings from your own consultations are income from your personal effort. A company or trust does not by itself move that income to a lower tax rate, and the ATO pays close attention to arrangements that try.
A structure can still have a place, for example to hold investments or a share in a practice. See our tax advice page for how we approach this.
Since 1 December 2024, wages a Queensland medical practice pays to general practitioners, whether contracted or employed, have been exempt from payroll tax. The exemption is specific to GPs and to medical practices other than hospitals. Other practitioners in the same clinic are treated differently, and other states have their own rules.
Payroll tax is the practice's liability, but it shapes service fees and agreements, and it becomes your concern if you buy in.
Under a typical service agreement the clinic does not pay super for you. We plan your personal contributions around your tax position and the contribution caps, and check whether the extra tax on contributions for higher earners applies to you.
Lenders generally assess contractors on taxable income and trading history. Some have policies for medical practitioners that are more flexible on both. These vary by lender and change over time.
Because we also prepare your tax position, we can show you how a decision that lowers this year's tax may lower what you can borrow. We explain why in how tax minimisation limits borrowing capacity.
Contractors have no sick leave or annual leave. If you cannot consult, your billings stop and your commitments do not. We advise on income protection and life cover, and on building a cash buffer and investments outside your practice income.
Read more about our financial advice engagement.
We start with where you are: billings, agreement, structure, debts and what is coming in the next few years.
You receive a written plan that sets out the decisions in order, what each one costs and saves, and what we have assumed.
We handle the tax work, structuring and finance, put the advice in place, then review it as your circumstances change.
Usually, once your turnover reaches the $75,000 registration threshold. Most medical services are GST-free, but GST-free income still counts towards that threshold. Once registered, you can generally claim back the GST the clinic charges on its service fee.
Not for the tax rate alone. Income from your own consultations is generally taxed as yours whichever entity receives it. A structure may still suit you for holding investments or owning part of a practice. The right answer depends on your circumstances.
Generally not where you engage the clinic and pay it a service fee. Super can be payable under some contracts that are mainly for a person's labour, so we check the agreement and how you are paid.
No single percentage suits everyone, because it depends on your billings, deductions, other income and any study loan. We estimate it in your first quarter and set your instalments so the amount is spread across the year.
Payroll tax is assessed on the practice, not on you. In Queensland, wages a medical practice pays to GPs have been exempt since 1 December 2024. It can still affect you through service fees and the way agreements are written, and directly if you become an owner.
Yes. We meet Brisbane clients at our Bowen Hills office and work with clients elsewhere in Australia by Teams/Zoom and phone.
A first conversation is about understanding where you are and what is coming up. Bring your question that is on your mind.