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For contracting doctors and allied health professionals
Reviewed by Panbo Ye, CFP®, FCPA Last reviewed
Before you sign, we read your contract with you, put a dollar value on each clause and check which structure fits the rules.
Your first meeting is at no cost, with no obligation · English or Mandarin
At a glance
| Your first meeting | Free, no obligation. This is a contract review: bring the draft agreement and any emails that came with it. We confirm scope and fees in writing before any work starts. |
|---|---|
| What’s included | A review of your draft contract with each clause given a dollar value, a structure and tax check, and a written summary of points to raise. We work alongside your lawyer for legal drafting. |
| Who you’ll work with | A client manager as your single contact, a senior tax manager reviewing your work, and me, Panbo Ye (CFP®, FCPA), leading advice. |
| Fees | Personal tax return with a financial wellbeing check $330; sole-trader schedule from $550; tax planning from $1,500 (+GST). See all fees |
Three common models
| Employee | Contractor paying a service fee | Contractor paid a percentage | |
|---|---|---|---|
| How the money flows | The practice pays you wages | Patient fees and Medicare benefits come to you; the practice invoices you its fee plus GST | The practice collects all fees and pays you a share |
| Super | The practice pays super guarantee | Usually your own responsibility | Super guarantee can still apply if the contract is mainly for your labour |
| Payroll tax risk | The practice’s cost | Lower when the money flow and agreement are genuine | Higher, and often pushed back to you through the split |
| GST | Not relevant to you | Your health services are generally GST-free; the service fee usually carries GST | Depends on the paperwork, and often misunderstood |
| Control and flexibility | Least | Most | In between |
The label on the contract does not decide the answer. Payroll tax, super and income tax each apply their own tests, and fixing one can create a problem in another. That is why we look at all three together.
How to read your contract
| Parties | Is the practice named by its legal entity and ABN, not just a trading name? Is the contract with you or with your company? |
|---|---|
| Fee basis | Is the service fee charged on receipted fees (money actually received) or on billed amounts? Is GST added on top or already inside the percentage? |
| What the fee buys | Rooms, reception, nursing support, consumables, equipment, after-hours cover, IT, marketing. Anything not listed may be charged again later. |
| Money flow | Whose bank account receives Medicare and patient payments? How often do you receive billing reports, and how quickly are you paid? |
| Incentives | Who keeps bulk billing incentives, your BBPIP share, practice nurse items such as 10997, and other program payments? |
| Payroll tax and super | Does any clause ask you to reimburse the practice’s payroll tax or super? That is a real cost and needs to be priced in. |
| Bad debts and refunds | Who wears unpaid accounts, rejected claims and refunds? Is the service fee reversed when a fee is never collected? |
| Term and notice | Is it ongoing or fixed? A fixed term with damages for leaving early can be expensive. Is the notice period realistic for both sides? |
| Restraint | How far, how long, and what does it stop you doing? Restraints over patients you brought with you deserve close attention. |
| Patient records | Who owns them, and can you get a complete copy if a complaint, claim or audit arises after you leave? |
| Medicare responsibility | You remain legally responsible for every claim made under your provider number. Nothing in the contract should take control of your billing away from you. |
| Promises | Anything you were told verbally, such as session numbers, room allocation or fee reviews, should be in writing. An entire-agreement clause usually wipes out the rest. |
Choosing a structure
Many contracting clinicians are told a company or family trust will save tax. Often it will not, because of the personal services income (PSI) rules.
When most of your income comes from your own skills and effort, the PSI rules generally tax it as yours, even if it is paid to a company or trust. Passing a results test, or the unrelated clients, employment or business premises tests (with the 80% rule), can change that, but many contractors do not pass.
Simple, low cost and fully compatible with PSI. With a separate tax account and the right super strategy, it is often the simplest fit for an individual contractor.
Employing staff, running a business that does not rely only on your own work, building towards practice ownership, or genuine asset-protection needs. We test it against the rules and your numbers before anything is set up.
Nobody pays your super if you do not. Concessional contributions, carry-forward of unused caps and Division 293 above $250,000 all deserve a plan.
Contractors are not covered by a practice’s workers compensation. Income protection, indemnity and public liability need to be your own. Income protection for doctors →
Your ABN, GST registration where required, invoicing and record-keeping set up correctly from day one, so tax time is simple.
How it works
Book online
Send us your draft contract before you sign, and I’ll tell you plainly what the numbers say. In English or Mandarin, in Chatswood or online. Prefer to talk first? Call 1300 913 929 or 0405 913 913.
Calendar not showing? Open the booking calendar in a new tab → or call 1300 913 929.
Reviewed for accuracy
Panbo Ye, CFP®, FCPA, SMSF Specialist Adviser™ and registered tax agent; founder of Everglow.
Last reviewed:
Rules, rates and thresholds change. Check the source, or talk to us, before acting. This page is general information, not personal advice.
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General information only. This page is general in nature and does not take into account your objectives, financial situation or needs. Rules, rates and Medicare items change; figures are current at the date of publication and should be checked against the ATO, Services Australia, MBS Online and your state revenue office before you act. Everglow is not a law firm: we review the financial, tax and commercial side of agreements and work alongside your lawyer for legal advice. Clinical and coding decisions always remain with the treating practitioner. Tax services are provided by Everglow Accounting Pty Ltd and Kam & Beadman Pty Ltd (liability limited by a scheme approved under Professional Standards Legislation). Financial advice is provided by Everglow Wealth Pty Ltd, Corporate Authorised Representative No. 1254987 of PGW Financial Services Pty Ltd (AFSL 384713).