For Melbourne’s Doctors, Dentists & Health Practices
Medical & Allied Health Accountants in Melbourne
You did not build a clinical career to chase BAS deadlines or wonder whether your structure is still safe. At 42 Advisory, our Chadstone team runs the accounting behind doctors, dentists and allied health practices as a system: proactive, organised, and built to keep you compliant while you build long-term wealth. We work with sole practitioners, growing clinics and multi-practitioner groups across Melbourne.
Accredited. Connected. Trusted by Melbourne’s Medical Community.
Certified Medical Accountants Backed by Australia’s Leading Platforms
42 Advisory’s Chadstone-based team combines medical accounting expertise with leading platforms like Xero, MYOB, and the ATO for seamless compliance and growth.
Built for Growth, Not Just Compliance
What accounting and advisory services do Melbourne health professionals need?
We deliver Tax, BAS, Bookkeeping, and Forecasting services tailored for doctors, dentists, and health practices across Melbourne’s east.
Specialist Medical Accounting — From Setup to Success
Running a medical or dental practice isn’t just about patient care — it’s a business that demands precision, compliance, and clarity.
Our Chadstone-based accountants help doctors, GPs, dentists, and allied health professionals structure smarter, stay compliant, and grow sustainably.
We focus on the numbers that drive care — so you can focus on the care itself.
Core Services Include:
Medical Tax Planning & Returns – Navigate ATO compliance while maximising deductions across practice entities and service trusts. Tax Planning Melbourne →
BAS & IAS Lodgement – Quarterly BAS lodgements for medical professionals — including GST-exempt and mixed billing practices. BAS Services →
Bookkeeping & Payroll – End-to-end Xero automation for doctors, associates, and admin staff with STP, super, and payroll accuracy. Bookkeeping Services →
3-Way Forecasting & KPI Dashboards – Real-time visibility into revenue, billings, and practice profitability — plan investments with precision. 3-Way Forecasting →
Salary packaging and FBT efficiency for medical professionals
We advise on compliant salary packaging opportunities, including FBT concessions and electric vehicle exemptions where relevant, to improve after-tax outcomes without adding administrative burden. For a practical breakdown, see our guide on EV salary packaging and FBT exemption for Melbourne medical practices.
Most Doctors Don't Leave Over Tax — They Leave Over Silence
Why Doctors Switch Firms
Many medical professionals stay with the same accountant for years, even when the relationship has stopped working. The reason is rarely cost or service. It is silence. Practitioners move when they no longer feel heard, or when advice only ever arrives after the fact.
Common signs it's time to switch:
- You are unsure if your service entity is structured correctly
- PSI questions get vague answers (or no answers)
- You receive last-minute requests before lodgement
- You do not have a clear tax plan — just a tax bill
You deserve an accountant who plans ahead, not one who reacts late. Many of our clients first came to us during a payroll tax review or a structuring question their previous accountant could not answer clearly.
Founders, Clinics, and Brands Who Trust Our Numbers
What Our Clients Are Saying
I am extremely satisfied with the services provided by Sergiy. His professionalism, technical skills, and dedication to client satisfaction are outstanding.
He gave me very helpful advice.
I highly recommend 42 Advisory for any accounting needs.
Dr. Kot
Highly recommend 42 Advisory. They clearly understand the medical industry and its regulatory and tax requirements. No hidden costs or surprises. The team is proactive, responsive, and consistently provides practical advice.
Dr. Peker
42 Advisory have become an integral part of our medical practice. Their precision in managing tax, BAS, payroll, and complex structures has given us clarity, compliance, and complete peace of mind
Family First Medical Center
Excellent service and a very smooth process from start to finish. Everything was explained clearly, making the experience straightforward and stress-free. Highly recommend.
Dr Exler
What does a medical accountant do?
Unlike a general accountant, a medical accountant understands how clinical income actually flows and where the compliance risk sits. We help practitioners assess whether income is personal services income, whether the personal services business tests apply, and how to structure remuneration in line with ATO expectations. For the detail, see our guide to PSI basics for doctors and our overview of how doctors are taxed in Australia.
Advisory-Led Insight
Beyond the Numbers
We go further than standard compliance.
Our accounting systems connect BAS, payroll, and cash flow forecasting into one integrated view of your practice’s financial health.
This means:
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No surprises at tax time — every number reconciled and reviewed monthly
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Reduced admin time — automated reporting through Xero and FYI
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Clear insight — real-time dashboards that track billing, wages, and profitability
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Confidence in every decision — advisory-led reviews each quarter
Many doctors operate through companies or trusts, but the personal services income (PSI) rules often determine how that income is ultimately taxed. We regularly help practitioners assess whether their clinical income is PSI, whether PSB tests apply, and how to structure remuneration in line with ATO expectations. We also assist with personal tax return planning for doctors, including salary, dividends, deductions, Medicare levy considerations, private health insurance, investment income and rental property reporting.
For a clear explanation, see our guide to PSI basics for doctors.
The Tax Side of Clinical Income
How are doctors taxed in Australia?
Most doctors are taxed on clinical income as personal services income unless they pass the personal services business tests. Income earned through a company or trust may still be attributed back to the individual. Correct structuring, documentation and remuneration planning determine the final tax outcome.
The personal services income rules sit in Divisions 84 to 87 of the Income Tax Assessment Act 1997. Many practitioners operate through companies or trusts, but those structures do not automatically change how clinical income is taxed. We help with personal tax return planning for doctors, covering salary, dividends, deductions, the Medicare levy, private health insurance, investment income and rental property reporting.
Built for Growing Practices
Do allied health practices need a specialist accountant?
Allied health practices benefit from a specialist accountant because of contractor versus employee classification, payroll tax on practitioner payments, the GST treatment of services, and room or service-fee arrangements. These issues carry real compliance risk and are often handled incorrectly by general accountants.
We work with allied health professionals across Melbourne, including physiotherapists, psychologists, occupational therapists, podiatrists, chiropractors, osteopaths, dietitians, speech pathologists and exercise physiologists. Whether you bill privately, under NDIS, or through Medicare care plans, the structure of your practice drives both your tax position and your payroll tax exposure.
Trusted. Proven. Precision Accounting for Melbourne’s Medical Sector.
Why do Melbourne’s medical professionals choose 42 Advisory?
42 Advisory is Melbourne’s trusted medical accounting firm—combining fixed-fee clarity, sector expertise, and flawless compliance for health professionals.
💡 Why Health Practices Choose 42 Advisory
Our medical clients stay with us for the same reasons their patients stay with them — clarity, care, and consistency.
We’re more than accountants; we’re your behind-the-scenes business partners, helping you stay compliant, protected, and prepared for what’s next.
What Sets Us Apart
🩺 Fixed-Fee Transparency
Predictable monthly pricing with no hourly surprises — you’ll always know your costs upfront. Learn more about fixed fees
🏥 Medical-Specific Expertise
We understand health practice structures, service trusts, GST exemptions, and payroll compliance unique to doctors, dentists, and allied health.
⚙️ Technology-Driven Systems
Integrated systems, automated workflows, and a skilled advisory team ensure every process runs precisely — from bookkeeping to strategic reporting.
📊 Proven Outcomes
Our advisory clients report improved cash flow visibility, faster ATO turnaround, and year-round confidence in full compliance. Learn more about how Doctros are taxed
Accurate. Ethical. Always on time — that’s the 42 Advisory standard.
Talk to a Medical Accounting Specialist
Why Health Professionals Trust 42 Advisory
Precision, Confidentiality & Care — in Every Number
As Melbourne-based accountants for the health industry, headquartered in Chadstone, we understand the complex balancing act of running a medical or dental practice. From managing multiple income streams and payroll to meeting healthcare-specific tax obligations, we deliver accuracy, confidentiality, and intelligent systems that make your finances work seamlessly in the background.
Our team partners with both independent practitioners and group clinics across Melbourne, helping you plan ahead, optimise cash flow, and grow sustainably — without ever losing sight of compliance or patient care.
“We speak your language — patients, performance, and practice growth.”
At 42 Advisory, clarity isn’t just our brand — it’s our promise. We simplify your financial universe so you can focus on what matters most: delivering exceptional care with confidence.
Client Case Study
From practising GP to practice owner: Family First Medical Center
When we first met the founder of Family First Medical Center, they were a practising GP weighing up a bigger step: moving from seeing patients to owning and running a practice. Today, that practice employs a team of doctors alongside allied health practitioners, nursing staff and administration. The growth did not happen by chance. It came from careful planning, realistic projections, the right financing, disciplined implementation, and ongoing monitoring and support as the practice scaled.
The starting point
A skilled clinician with a clear vision, but the usual questions of any first-time practice owner: which structure protects me and works for tax, can the numbers actually support employing a team, how do I fund the fit-out and equipment, and how will I know if it is working once it is running.
What we did
- Planning & structure. We set up a structure suited to a multi-practitioner practice, with attention to asset protection, practitioner agreements and payroll tax exposure from day one.
- Projections. We built 3-way forecasts covering billings, wages, on-costs and cash flow, so the owner could see what employing each new practitioner would mean before committing.
- Financing. We helped prepare the numbers behind the funding for fit-out and equipment, so finance conversations were backed by credible projections.
- Implementation. We set up Xero, payroll and bookkeeping so tax, BAS, superannuation and single touch payroll ran cleanly across doctors, allied health, nurses and admin.
- Monitoring & support. We review performance regularly, keep the structure current as the team grows, and stay available between meetings rather than only at year end.
The outcome
A single GP became the owner of a multi-disciplinary practice with a team of doctors, allied health practitioners, nursing and administrative staff. The owner has clarity on the numbers, confidence in compliance, and a financial system that scales with the practice. The advisory relationship covers BAS lodgement, payroll and bookkeeping, structuring and ongoing forecasting.
YOU MAY NEED TO KNOW
Frequently Asked Questions for Doctors & Health Professionals 🩺
How do Australian doctors reduce their taxes?
Doctors can legally reduce tax through structure optimisation, super contributions, asset planning, and claiming eligible professional deductions.
Medical professionals can claim deductions for continuing education, medical equipment, and practice expenses.
Strategic structures—can help manage income distribution and protect assets.
Annual tax planning ensures compliance with ATO guidelines while minimising liabilities.
What’s the best accounting structure for a medical practice in Australia?
Most medical practices benefit from a service entity or company setup that separates business income from personal assets.
Your optimal structure depends on income level, risk exposure, and practice type.
Service entities allow efficient income splitting and GST treatment for mixed billing, while corporate structures support asset protection and succession planning.
How much does it cost to hire an accountant for doctors in Australia?
Specialist medical accountants typically charge $3,000–$8,000 annually for full BAS, tax, and advisory management.
Costs vary depending on practice complexity and the scope of services.
Fixed-fee arrangements (like 42 Advisory’s subscription model) provide predictable pricing with unlimited support for BAS, payroll, and strategic reviews.
How much do accountants charge per hour in Australia?
Accounting fees in Australia average $150–$350 per hour, but fixed-fee models are now preferred by professional practices.
Hourly billing creates uncertainty.
Fixed-fee packages align with modern healthcare business models—offering complete transparency, compliance coverage, and advisory access without time pressure.
Do doctors pay GST on their medical services?
Most medical and dental services are GST-free, but non-clinical services like cosmetic or consulting work may attract GST.
ATO rules classify medical services for patient care as GST-free, but administration, training, and product sales require GST registration.
Correct coding and BAS preparation prevent compliance issues and penalties.
How do I choose the right accountant for my medical practice?
Look for a CPA-accredited firm with healthcare expertise, fixed pricing, and a proven compliance record—like 42 Advisory.
Beyond tax skills, your accountant should understand healthcare-specific payroll, super, and mixed billing.
Ask about their track record, communication approach, and whether they offer integrated advisory support.
What’s included in 42 Advisory’s medical accounting service?
Our service covers tax returns, BAS lodgement, payroll, forecasting, structure advice, and quarterly performance reporting.
We manage your entire financial ecosystem—combining compliance and growth strategy into one fixed-fee system.
Clients enjoy 100% on-time BAS lodgement, nil penalties, and measurable improvement in cash flow visibility.
What are common ATO red flags for medical professionals?
Inconsistent income reporting, missing super payments, and excessive “management fees” often trigger ATO review.
Doctors often attract attention when expenses are disproportionate to income or when service entities aren’t properly documented.
Regular compliance checks and written procedures mitigate these risks.
What does an accountant for doctors do?
An accountant for doctors specialises in working with medical professionals, including GPs and medical clinics. The role involves understanding how doctors earn income, Medicare billing flows, service entity arrangements, PSI rules, and the higher compliance and audit risks that apply to medical professionals. Unlike a general accountant, an accountant for doctors provides advice tailored specifically to the financial, tax, and structural realities of medical practice.
Do GPs need a specialist accountant?
In most cases, yes. GPs face higher ATO scrutiny and more complex income structures than typical small businesses. A specialist accountant helps ensure your setup is compliant, efficient, and defensible — particularly if you operate through trusts, companies, or service entities.
How much does a medical accountant charge per hour?
In Australia, accountant hourly rates generally range from $150 to $400 per hour, depending on experience, specialisation, and the complexity of the work. Medical and specialist accountants typically sit at the higher end of this range due to the additional compliance and advisory expertise required. At 42 Advisory we don't work on open-ended hourly billing — we operate on a fixed-fee arrangement and always provide a clear quote upfront, giving doctors and practice owners cost certainty, no surprise invoices, and ongoing access to advice.