---
title: Tax Advice & Structure Reviews for Doctors | Verity
description: Tax advice for GP contractors and practice owners. Review PSI, company and trust structures, tax cashflow and financial trade-offs before making key decisions.
---

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Tax advice and structuring for Australian doctors

# Tax advice for doctors and practice owners

Earning more, considering a company or trust, preparing to borrow or buying into a practice? Before making another commitment, understand what your tax arrangements achieve, what the rules allow and how the alternatives affect your wider finances.

[Discuss a Tax Structure Review](https://meetings.hubspot.com/verityadvisory/15-min-phone-call)[GP contractor tax advice](https://www.verityadvisory.com.au/doctors/gp-contractors/?hsLang=en-au)

We agree the scope and fees before any paid work begins.

When something changes

## Do any of these situations sound familiar?

Most doctors don't ask for a tax structure review without a reason. They want to resolve a tax concern, understand a new opportunity or avoid getting an important decision wrong.

[You have started contractingYou've gone from PAYG salary to billings, service fees and tax you must manage yourself. What is the right way to operate—and how do you avoid the first big tax surprise?For GP contractors →](https://www.verityadvisory.com.au/doctors/gp-contractors/?hsLang=en-au)

Your income is growing, but the tax feels relentlessSomeone has suggested a company or family trust. Will it actually help with your type of income, or simply add costs and obligations?

You're planning to buy a home or investYou want to use your surplus income well, but worry that a tax decision today could restrict borrowing or make investments harder to manage later.

[You're being offered practice ownershipA buy-in, new partner or business restructure raises questions about who receives profits, tax liabilities and what happens if the arrangement changes.Practice buy-in advice →](https://www.verityadvisory.com.au/doctors/practice-buy-in-advice/?hsLang=en-au)

You already have entities but aren't sure whyCompanies, trusts and assets may have accumulated over time. Do they still serve a purpose, and what would changing them cost?

Sometimes the best advice is to keep an existing arrangement and address a specific risk—not to create another entity.

Tax-led, decision-focused

## What we examine before recommending a change

A good tax structure is more than a low headline tax rate. We consider how money is earned, where assets and obligations sit, what the rules permit and what needs to remain flexible.

[01How you earn incomeEmployment, GP contracting, service arrangements and practice profits may have different tax treatment. We assess the relevant personal services income and integrity rules.GP contractor advice →](https://www.verityadvisory.com.au/doctors/gp-contractors/?hsLang=en-au)

02Your existing entities and ownershipReview what each individual, company or trust is intended to do, related-party dealings and whether the tax and administration costs remain justified.

03Tax liabilities and available cashConsider projected income tax, PAYG instalments, GST and other business obligations where relevant, so tax isn't confused with money available to spend or invest.

[04Practice transactions and changesAssess the tax implications of a practice buy-in, ownership restructure, expansion or exit before the legal and funding commitments are locked in.Practice buy-in advice →](https://www.verityadvisory.com.au/doctors/practice-buy-in-advice/?hsLang=en-au)[05The decisions beyond taxIdentify how potential changes interact with lending, super, investments, cashflow and asset ownership. Specialist advice is coordinated where needed.Financial advice →](https://www.verityadvisory.com.au/what-we-do/financial-advice/?hsLang=en-au)

Medical practice bookkeeping, BAS, tax returns and regular reporting are available through our [medical practice accounting](https://www.verityadvisory.com.au/what-we-do/medical-accounting/?hsLang=en-au) service.

## Should a doctor use a company or trust to reduce tax?

**Not automatically—and income level alone is not the deciding factor.** Income mainly produced by a doctor's own professional effort or skill may be personal services income (PSI). Where the PSI rules apply, income received through a company, partnership or trust can be attributed to the individual, with restrictions on certain deductions. Even where a personal services business test is met, other tax integrity and anti-avoidance rules may remain relevant.

A structure may still be appropriate for a genuine medical practice business, ownership of assets, succession or other commercial reasons. Its benefits need to be weighed against setup and ongoing costs, reporting, access to funds and the tax consequences of a future change. We assess the specific activities, contracts and income streams rather than assuming every high-income doctor should incorporate.

## What is a Tax Structure Review?

A Tax Structure Review is a scoped engagement to understand whether your existing arrangements still suit the decisions ahead. It is not a promise of tax savings or an automatic recommendation to establish another entity.

### Questions we can examine

- **Income and arrangements:** where billings, wages, service fees and business profits arise, and the relevant PSI or integrity issues.
- **Entities and assets:** why each company or trust exists, what it owns, how funds move between parties and what obligations follow.
- **Tax and cashflow:** current and expected tax liabilities, instalments, distributions, retained funds and the cash available for commitments.
- **Upcoming decisions:** major borrowing, property purchases, practice ownership, investment or retirement plans that may be affected by a change.
- **Alternatives and implementation:** what could be retained, simplified or changed, and the tax, legal, duty, CGT and administration implications that require further work.

### What do you receive?

We agree the review scope, information required, fees and form of findings before proceeding. Depending on the engagement, the outcome may include a documented assessment of the main issues, practical alternatives, material trade-offs and recommended next steps. Detailed restructuring, legal documentation, finance applications and implementation are separately scoped where required.

See the ATO's [personal services income guidance](https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/personal-services-income) for general background.

## A lower tax bill isn't always a better financial outcome

The right decision depends on what you are trying to achieve. Tax is important, but it should not be optimised in isolation from borrowing, access to cash, investment ownership or the costs of administering a structure.

[Borrowing and financial statementsA lender may assess PAYG earnings, contractor income and company or trust income differently. Consider evidence of income, debt and future lending needs before implementing a tax arrangement.Discuss borrowing implications →](https://meetings.hubspot.com/verityadvisory/15-min-phone-call)[Debt, super and investment ownershipUsing surplus funds to reduce non-deductible debt, invest or contribute to super involves different tax, liquidity and longer-term consequences. The best choice is not necessarily the largest immediate deduction.Financial advice →](https://www.verityadvisory.com.au/what-we-do/financial-advice/?hsLang=en-au)[Practice ownership and exitBuying, holding or selling a practice can involve asset or equity ownership, capital gains, distributions and future obligations. The structure should be considered before binding arrangements are signed.Practice buy-in advice →](https://www.verityadvisory.com.au/doctors/practice-buy-in-advice/?hsLang=en-au)

## How we approach your tax structure

We start with the decision or concern driving your enquiry, then agree what work would be useful and proportionate. Not every matter requires a full restructure.

1. Step 1
   
   Clarify what's changing
   
   Discuss your income arrangements, existing entities, tax position and the decision that has brought the issue into focus.
2. Step 2
   
   Examine the relevant alternatives
   
   Within the agreed scope, assess tax treatment and practical trade-offs—including complexity, compliance cost, cash access and connected financial consequences.
3. Step 3
   
   Set out the next steps
   
   Explain the findings and recommended sequence. If separate legal, lending, financial advice or implementation work is needed, agree that scope before proceeding.

## Tax and structure questions doctors ask

Should I set up a company or family trust because my income is high?

Not based on income level alone. Clinical income primarily earned from your own work may be personal services income. The PSI rules and other integrity provisions can affect whether an entity produces a tax benefit. We look at the actual contracts, services, income streams and commercial reasons for the structure.

What if I already have a company or trust?

We can examine why it was established, how income and assets flow through it, current compliance costs and whether it still serves the intended purpose. Changing or closing an entity can itself create tax, duty, financing and legal issues, so we assess the consequences before recommending action.

What does a Tax Structure Review involve?

We agree the specific questions, documents and fees first. Depending on the engagement, we review income arrangements, existing entities, tax and cashflow obligations, upcoming commitments and relevant alternatives. Findings and implementation requirements are discussed or documented according to the agreed scope.

Will a Tax Structure Review guarantee tax savings?

No. A useful outcome may be identifying an unnecessary cost, avoiding a tax risk or confirming that the current arrangement is appropriate. The aim is a defensible decision, not a predetermined tax reduction.

Can tax planning affect how much I can borrow?

Yes. Lenders can assess PAYG, contracting and entity income differently. Tax returns, financial statements, distributions and retained profits can affect available evidence and lender calculations. We consider material borrowing plans before recommending changes.

Do you only give advice before 30 June?

No. Decisions about contracting, company or trust structures, asset ownership and practice transactions often need attention when they arise. Annual tax planning and PAYG instalment reviews also help manage liabilities and cashflow through the year.

Are contractor arrangements always more tax-effective?

No. An ABN or contractor label does not establish the legal or tax outcome. Service agreements, PSI, GST registration, tax instalments and possible super obligations must be assessed on their facts. See our [GP contractor advice](https://www.verityadvisory.com.au/doctors/gp-contractors/?hsLang=en-au).

Can you help with tax returns and ongoing accounting?

Yes. We provide tax preparation and related accounting services, with the appropriate scope agreed for the client or practice. Our [medical practice accounting](https://www.verityadvisory.com.au/what-we-do/medical-accounting/?hsLang=en-au) page explains the business reporting and compliance services available to practice owners.

## Before changing your structure, understand your options

Whether you're becoming a contractor, reviewing existing entities or preparing for practice ownership, start with the issue you want to resolve. We'll discuss whether a scoped Tax Structure Review or another engagement is appropriate.

[Discuss your tax and structure needs](https://meetings.hubspot.com/verityadvisory/15-min-phone-call)

## What tax or structure decision is on your mind?

Maybe your income is changing, a company or trust has been suggested, or a practice transaction is getting closer. Tell us what is happening and what you are uncertain about.

We'll discuss the most relevant questions, how a review could be scoped and what happens before any paid work begins.

[1300 173 103](tel:1300173103)[info@verityadvisory.com.au](mailto:info@verityadvisory.com.au)Suite 10, 39 Jeays St, Bowen Hills QLD 4006[Book a 15-minute discovery call →](https://meetings.hubspot.com/verityadvisory/15-min-phone-call)

VERITY ADVISORY

Financial guidance for doctors.

Suite 10, 39 Jeays St, Bowen Hills QLD 4006

Explore [About](https://www.verityadvisory.com.au/about/?hsLang=en-au) [Tax advice](https://www.verityadvisory.com.au/what-we-do/tax-advice/?hsLang=en-au) [Medical practice accounting](https://www.verityadvisory.com.au/what-we-do/medical-accounting/?hsLang=en-au) [Financial planning](https://www.verityadvisory.com.au/what-we-do/financial-advice/?hsLang=en-au) [Insights](https://www.verityadvisory.com.au/insights/?hsLang=en-au)

Who we help [GP contractors & locums](https://www.verityadvisory.com.au/doctors/gp-contractors/?hsLang=en-au) [Practice buy-ins & owners](https://www.verityadvisory.com.au/doctors/practice-buy-in-advice/?hsLang=en-au) [Dentists](https://www.verityadvisory.com.au/doctors/dentists/?hsLang=en-au)

Contact [1300 173 103](tel:1300173103) [info@verityadvisory.com.au](mailto:info@verityadvisory.com.au) [LinkedIn](https://www.linkedin.com/in/tommylica/) [Google reviews](https://g.page/r/CYh1GySJj-nIEBM/review) [Client portal](https://clients.karbonhq.com/us2/21yyHN8dJMd6/login)

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The information on this website is general information only and is not intended to be a recommendation. We strongly recommend you seek advice from your financial adviser as to whether this information is appropriate to your needs, financial situation and investment objectives. Whilst every care has been taken in the preparation of this website, Verity Finance Pty Ltd, its related entities, directors, authors, consultants, editors and any persons involved in the construction of this website, expressly disclaim all and any form of liability to any person in respect of this website and any consequences arising from its use by any person in reliance upon the whole or any part of this website.

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