Are you opening a general practitioner clinic? Here’s What You Need to Know
- johnry8
- Jan 19
- 2 min read
At Rise Accountants, we work closely with GP clinics and medical professionals across Brisbane, helping them set up business structures and build sustainable practices from the ground up.
This guide below outlines the things you need to know before opening a GP clinic in Australia.
1. Choose the right business structure
One of the first and most important decisions is how your GP clinic will be structured.
Common structures include:
Company
Trust (often with a corporate trustee)
Partnership (less common due to higher risk exposure)
Most GP clinics operate under a service entity model, where:
The clinic entity provides rooms, staff, equipment and management services
GPs operate as independent practitioners and pay service or facility fees
At Rise Accountants, we help medical practice owners design structures that balance tax efficiency, asset protection and Medicare compliance while supporting future growth.
2. Medicare billing and compliance
Medicare is the primary revenue source for most GP clinics, making compliance critical.
Key areas that require attention include:
Correct use of MBS item numbers
Bulk billing vs mixed billing strategies
Proper clinical documentation
Clear separation between medical decision making and management entities
3. GST and tax obligations
Most GP consultations are GST free, but not all services offered by a clinic are treated the same way.
GST may apply to:
Cosmetic or non medical services
Certain allied health services
Service fees and room rental arrangements
Product sales
4. Doctor agreements and contractor arrangements
GP’s typically work as independent contractors rather than employees, but contracts must be carefully structured.
Agreements should clearly cover:
Service fees or percentage arrangements
Access to rooms, staff and systems
Working hours and leave
Termination and restraint clauses
Medicare and AHPRA compliance
5. Payroll tax risks for GP clinics
Payroll tax is one of the biggest risks facing GP clinics in Australia today.
Even when doctors are contractors, state revenue authorities may still treat payments as taxable wages depending on how arrangements are structured.
We help GP clinics:
Review and restructure contractor agreements
Understand state specific payroll tax rules
Reduce exposure through compliant operating structures
6. Accounting systems and financial reporting
Strong financial systems are essential from day one.
We assist GP clinics in setting up:
Accounting systems (Xero, QuickBooks and MYOB)
Clear separation of clinic income and practitioner income
Monthly financial and cash flow reporting
Service fee and expense tracking
7. Registrations, licences and insurance
Before opening your clinic, ensure you have:
ABN and business registrations in place
AHPRA compliant practitioners
Professional indemnity insurance
Public liability insurance
Workers compensation where applicable
8. Planning for growth
Many GP clinics expand quickly once established.
Rise Accountants help clients plan for:
Adding more GPs
Introducing specialised services
Integrating allied health professionals
Expanding to additional locations
Why work with Rise Accountants?
Rise Accountants specialise in medical and healthcare accounting in Brisbane, with experience supporting GP clinics, medical practitioners and health professionals.
We understand:
Medicare and MBS compliance
Medical service entity structures
Payroll tax risks in healthcare
Tax planning for clinic owners
What business structure will suit your business
Our role is to help you open and operate your GP clinic with confidence and long term success.
Thinking of Opening a GP Clinic?