With over 40 years of experience providing accounting services for the medical industry, Liston Newton Advisory has a proven track history of assisting GPs like yourself.
Whether you need help with private health insurance rebates, administration and accounting software integration, or general taxation and bookkeeping services, we offer the skills and experience to keep your business thriving.
Consolidation and amalgamation advice
Business buy-in and service payment fee advice
Wealth creation advice
Payroll & bookkeeping services
Our experience goes back 40 years, to when we first began helping medical practitioners with their accounting needs.
Whether you need advice on structuring your business, practice consolidation, payroll services, tax planning or much more, we're here for you.
We're all about nurturing relationships, working with you over the long-term to help you achieve your business goals.
Our accounting technology and software solutions are designed to simplify your processes for smoother business operation.
Since 2004, we've assisted a Hawthorn-based GP with the growth and management of their practice.
As the practice expanded, we helped to structure their additional staff as independent contractors, increasing revenue without taking on employee liability.
We've helped the owner-doctor protect personal assets with the correct structuring that helped minimise tax.
We also took over the running of their payroll and bookkeeping functions, freeing up the admin team to focus on servicing the patients.
Finally, we assisted with a succession plan that allowed the owner to sell part of the business, allowing the next generation of doctors to take ownership of the practice.
We're a specialist accounting and business advisory firm with more than 40 years of experience. We exist to help our clients grow more successful, streamlined businesses and achieve financial freedom.
Our team can help with everything from strategic advice to support for day-to-day work processes, for improved business efficiency and long-term success.
As a GP there are a variety of structure options available to run your business. These include:
Sole trader: Cheap to set up and run, but with unlimited liability – and the highest tax rates could apply.
Family or Unit Trust: These are a flexible option that can work well for solo operators, or with other practitioners. Family or Unit Trusts also allow flexibility for tax distributions and longer term tax concessions. They can, however, be limiting in some circumstances if you wish to scale.
Company: Company structures provide limited liability and a capped rate of tax at 27.5%. However, they're a more rigid structure than a trust and need to comply with the Corporations Act. Companies do scale well and allow for multiple owners and changing circumstances.
Partnership: Partnership structures can suit two or more doctors who want to carry on a business and split profit. They're relatively cheap and easy to maintain, but partners are liable for each others' actions.
Associateship: This is when two or more doctors operate a practice together, but each doctor operates distinctly, and handles their own tax and legal requirements.
Assistantship: Applicable to non-owner doctors. In this situation the non-owner doctor is considered an assistant to the owner doctor. The assistant is viewed as an employee and is subject to employment laws, leave entitlements, superannuation etc.
This is a common trend for medical professionals, and whilst it doesn't suit everyone, it can provide advantages in:
When a practice is consolidated with another medical professional, a management or service fee is usually put in place. This covers overheads such as rent, electricity, reception and administration staff.
It's important to note that it does not usually cover things like professional indemnity insurance, registrations and training.
Typically the management fee is between 30% and 40% of billings, and this also includes collecting cash from insurers and patients.
Careful planning and consideration should be undertaken before an amalgamation is considered.
If the correct administration and procedures are followed, additional GPs and allied health professionals are not employees and can be considered independent contractors within the practice.
It's common to pay an agreed percentage of the total amount of income they generate.
They are not required to have an employment contract, as they are not employees and are not paid under the Fair Work human resources guidelines.
Best practice is to provide a letter of engagement that outlines the terms of their tenure.
The terms in the letter should include:
Once these steps are completed, staff generally aren't classified as employees and the clinic is not liable to pay superannuation, workcover or payroll tax.
We understand the key components of a successful medical practice. Talk to us for expert advice.