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. As an accountant for doctors, dentists and allied health practices, we deal with PSI, service entity and payroll tax questions every week.
CPA practice and registered tax agent
Certified Medical Accountants, Working in Xero, MYOB and the ATO Portal
Our Chadstone team works in Xero, MYOB and the ATO portal, so your compliance runs on the systems your practice already uses.
Compliance and growth in one place
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 Practice Setup Onwards
A medical or dental practice is a business as well as a clinic, and the compliance side of it does not run itself.
Our Chadstone-based accountants help doctors, GPs, dentists, and allied health professionals structure properly and stay compliant.
We handle the numbers so you can get on with seeing patients.
Core Services Include:
Medical Tax Planning & Returns – Keeping the ATO side clean while claiming what the practice is entitled to across practice entities and service trusts. Tax Planning Melbourne →
BAS & IAS Lodgement – Quarterly BAS lodgements for medical practices, including GST-free and mixed billing arrangements. BAS Services →
Bookkeeping & Payroll – Xero payroll set up and run for doctors, associates and admin staff, with STP and super handled. Bookkeeping Services →
3-Way Forecasting & KPI Dashboards – Current numbers on revenue, billings and profitability, so you can plan equipment and hiring decisions on figures rather than guesswork. 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 paperwork. For a practical breakdown, see our guide on EV salary packaging and FBT exemption for Melbourne medical practices.
Why practitioners change accountants
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 get a tax bill at year end, but never a tax plan before it
If that sounds familiar, the problem is usually the accountant, not the practice. 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
Compliance is the baseline, not the whole job.
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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Every number reconciled and reviewed monthly, so tax time holds no surprises
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Reporting automated through Xero and FYI, which cuts the admin your practice carries
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Dashboards that track billing, wages and profitability as they happen
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A review with an adviser each quarter, not just a set of accounts once a year
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.
Accounting for Melbourne's medical sector
Why do Melbourne’s medical professionals choose 42 Advisory?
We are a Chadstone CPA practice working almost entirely with medical, dental and allied health clients, on a fixed fee agreed before the work starts.
Why Health Practices Choose 42 Advisory
Our medical clients stay because they hear from us before the deadline, not after it.
We handle the compliance in the background and raise the things that need a decision while there is still time to make one.
What Sets Us Apart
Fixed-Fee Transparency
Predictable monthly pricing, quoted before we start, with no hourly surprises. 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
Bookkeeping, payroll and reporting run on connected systems, so the same numbers carry through to your quarterly review.
Proven Outcomes
Advisory clients tell us the main difference is knowing where the practice stands month to month, rather than finding out in October. Learn more about how doctors are taxed
Accurate work, lodged on time, every time.
Talk to a Medical Accounting Specialist
Why Health Professionals Trust 42 Advisory
Confidential, careful work on every number
As Melbourne-based accountants for the health industry, headquartered in Chadstone, we know what running a medical or dental practice involves. Multiple income streams, payroll across clinical and admin staff, and tax obligations that do not apply to most other businesses. We keep that side accurate and confidential, and out of your way.
Our team partners with both independent practitioners and group clinics across Melbourne, helping them plan ahead and keep cash flow under control without letting compliance slip.
“You should not have to explain Medicare billing to your accountant.”
We keep the financial side of your practice clear enough that you can make decisions on it quickly, then get back to your patients.
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.
A well-chosen structure can help with income distribution and asset protection.
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 practice with real healthcare experience, fixed pricing and a clean lodgement record.
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.
Compliance and advisory sit under one fixed fee, so there is no separate bill when you ring with a question.
Our medical clients have had every BAS lodged on time and no ATO penalties.
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.