Do I Need to Register for GST as a General Practitioner?

Many GPs mistakenly believe that GST doesn’t apply to them because most medical services are GST free. While it’s true that most health services are exempt, this doesn’t automatically mean you don’t need to register. 

By understanding how GST works for medical professionals, you can take better control of your business finances and avoid common ATO mistakes. 

Understanding GST for Medical Services 

What Is GST?  

GST is a 10% tax added to most goods and services sold or consumed in Australia. Businesses must register for GST if their annual turnover is $75,000 or more. 

Are Medical Services GST Free? 

Yes, most medical services are GST free when: 

• They are intended to treat or prevent a medical condition 

• They qualify under the Medicare Benefits Schedule (MBS) 

• This includes standard consultations, chronic disease management and most clinical procedures. 

  
  

However, just because your services are GST free does not automatically exempt you from registering for GST if your total income exceeds the threshold. 

When You Must Register for GST 

You are required to register for GST if: 

• Your gross turnover from all services, including GST free and taxable services, is $75,000 or more 

• You provide any taxable (non GST free) services, such as: 

• Cosmetic treatments not covered by Medicare 

• Non-clinical reports, for example insurance or legal 

• Public speaking, corporate health programs or medical consulting 

  
  

Tip: The $75,000 threshold is based on your total income, not just taxable income. 

When You May Not Need to Register 

You may not need to register for GST if: 

• Your total consulting income (turnover) is below $75,000 per year 

• You work as a contractor GP for a clinic or medical centre that pays you as a salary & wages type situation and handles your superannuation and PAYG Withholdings obligations for you. 

  
  

That said, be cautious. Many GPs underreport their turnover or include additional income streams, such as consulting or cosmetic services, without realising those services are not GST free. 

Best Practices for GPs 

Do’s 

• Keep track of your total income, including both GST free and taxable services  

• Review your status annually or when you take on new types of services  

• Use accounting software to help you separate GST free and taxable income  

• Seek tailored advice from a registered tax or BAS agent if unsure 

  
  

Don'ts  

• Do not assume all medical related services are exempt  

• Do not overlook secondary income like legal reports or aesthetic procedures  

• Do not delay registration once you exceed the threshold, as you may risk ATO penalties 

  
  

Are you feeling unsure about your GST obligations or how to set up your practice for compliance and growth while focusing on patient care?  

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