Do Physiotherapists Need to Charge GST on Their Services?
- johnry8
- Jul 14
- 2 min read
Charging GST (or not) affects your pricing and your business obligations. If you incorrectly charge GST or fail to charge it when required, you could run into ATO compliance issues.
Many physiotherapists assume that all health services are GST free, but that’s not always the case.
Understanding GST for Physiotherapists in Australia
1. When Are Physiotherapy Services GST Free?
According to the ATO, most physiotherapy services are GST free when they meet the definition of a health service. This includes:
Musculoskeletal treatment
Rehabilitation sessions
Injury prevention therapy
Clinical assessments related to physical health
Key condition: The service must be provided by a qualified practitioner (i.e. registered with AHPRA) and must be intended to treat or prevent a health condition.
2. When Do You Need to Charge GST?
Not all services offered by physios fall under GST free status. You may need to charge GST if:
You are offering nonclinical services (e.g. fitness classes, wellness programs, corporate workshops not related to medical treatment)
You are selling products such as rehab equipment, supplements, or branded merchandise
Your services are not clearly linked to preventative or remedial health care
Tip: Bundled services (like a mix of treatment and fitness coaching) may need to be split into GST free and taxable components.
3. GST Registration Threshold
If your business has an annual turnover of $75,000 or more, you are required to register for GST.
Once registered, you must include GST in the price of taxable services and lodge Business Activity Statements (BAS) regularly.
Don’t forget: Even if your core services are GST free, if your business sells any taxable goods or services, you will need to manage GST correctly.
Best Practices for Physiotherapists
Do’s
Clearly separate GST free vs taxable income in your practice and accounting software
Consult an accountant to review your pricing and BAS reporting
Label invoices correctly to indicate which services are GST free and which include GST
Don'ts
Do not assume all services are GST free especially if you offer wellness, fitness, or coaching packages
Still Unsure About GST for Your Physio Business?