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ABN & Business Structure

As an independent speech pathologist, you’ll need an Australian Business Number (ABN) to operate as a sole trader or contractor. Some practitioners may consider setting up a company or trust, but most start as sole traders due to the simpler setup and lower costs.

Tax Obligations

Unlike employees, contractors and sole traders don’t have tax automatically deducted from their income. Instead, you must:

• Pay Income Tax: Set aside money for tax, as you’ll need to lodge a tax return each year.

• Make PAYG Instalments: If your income is high enough, the ATO may require you to pay tax in quarterly instalments.

• Register for GST: If your annual turnover is $75,000 or more, you must register for Goods and Services Tax (GST) and add 10% to your service fees. You must also lodge a Business Activity Statement (BAS) regularly.

Superannuation for Contractors

As a sole trader, you are not entitled to employer-paid super but can make voluntary contributions to your super fund. If you contract to a business under conditions similar to an employee, that business may be required to pay superannuation on your behalf. Check with an accountant to determine your eligibility.

Invoicing & Record Keeping

Since you’re responsible for getting paid, ensure you:

• Provide clear invoices that meet ATO requirements.

• Track income and expenses using accounting software or a spreadsheet.

• Keep receipts and records for at least five years in case of an audit.

Tax Deductions for Sole Traders

As a business owner, you can claim a range of deductions to reduce your taxable income, including:

• Professional Memberships & Insurance: SPA membership, professional indemnity insurance.

• Work-Related Equipment: Therapy tools, laptops, office furniture.

• Home Office Expenses: If you work from home, you may claim a portion of rent, electricity, and internet.

• Travel & Vehicle Costs: If you travel to clients, you can claim car expenses or public transport.

• Marketing & Advertising: Website costs, business cards, online advertising.

Medicare, NDIS & Private Health Fund Considerations

• Medicare & NDIS: You may need to register as a provider to bill under these systems.

• Private Health Funds: Some funds require speech pathologists to be SPA-certified to allow clients to claim rebates.

Need Help Managing Your Finances?

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Running your own speech pathology business comes with financial responsibilities, but proper planning can make it easier. We can help with tax planning, GST, and setting up a system that works for you.