Accountant for General Practitioners: GP Industry Analysis
Quantum House is an accountant for general practitioners and the medical centres they work in. In the video below, our team summarises IBISWorld’s 2024 report on general practice medical services in Australia. It covers industry performance, the shift in billing models and the cost pressures on practices.
Payroll tax: the biggest issue for NSW medical centres
Most general practitioners work as contractors to a medical centre. Revenue NSW treats many of these arrangements as relevant contracts, so payments to GPs can attract payroll tax. Its guidance for medical services also lists the contractor exemptions that may apply.
In addition, NSW offers relief through the Bulk Billing Support Initiative. Since 4 September 2024, a payroll tax rebate has been available on payments to GP contractors. However, it applies only where enough GP services are bulk billed:
- at least 80% of GP services in metropolitan Sydney; or
- at least 70% of GP services elsewhere in NSW.
The rebate does not cover employed GPs, non-GP specialists or allied health providers. Separately, centres with unpaid payroll tax on GP contractor payments before 4 September 2024 may qualify for an exemption for that earlier period. Because the thresholds are measured across the whole centre, billing data needs to be tracked carefully.
Other tax issues for general practitioners
- GST: medical services are generally GST-free when they are necessary for appropriate treatment. The ATO’s GST and health guide explains the rules, including for goods sold by a practice.
- Super: contractors paid mainly for their labour can be eligible for super guarantee. From 1 July 2026, contributions must also reach the fund within 7 business days of payday.
- Personal services income: a GP operating through a company or trust needs to consider whether the personal services income rules apply before income is retained or distributed.
- Service entities: many practices use a separate service company. Its fees must be commercial and properly documented.
How an accountant for general practitioners helps
We work with practice owners and with individual GPs. For owners, we review contractor agreements, model the bulk billing thresholds and prepare payroll tax returns. For individual doctors, we handle tax returns, structuring and planning for the move from contractor to practice principal.
Our wider work for doctors, specialists and clinics is set out on our medical practice accounting page. We also explain the main issues in our article on accounting for medical practices. For monthly reporting and forecasting, see our outsourced CFO services.
If you need an accountant for general practitioners in Sydney, contact our team.