Business Structure & Registration

Choosing the right structure for your speech pathology practice affects your taxes, liability, and operational flexibility. Common structures include:

• Sole Trader – Simple setup with full control but personal liability.

• Company – Limited liability with more complex tax requirements.

• Partnership or Trust – Suitable for multi-owner practices with structured income distribution.

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Regardless of your structure, you’ll need an ABN (Australian Business Number) and may need to register for GST if your revenue exceeds $75,000 per year.

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Tax & GST Considerations

As a practice owner, you are responsible for managing your business taxes. Key tax obligations include:

• Income Tax: Pay tax on your profits, with possible deductions for business expenses.

• GST Registration: If your turnover is $75,000+, charge 10% GST on services and lodge a Business Activity Statement (BAS).

• Payroll Tax: If you employ staff, ensure you meet payroll tax thresholds in your state.

• Superannuation Contributions: Employers must pay 11% super for employees. If you're a sole trader, consider making voluntary contributions to your super.

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Working On vs. In Your Business

Balancing client care with business management is one of the biggest challenges for practice owners.

• Working In Your Business: Direct client work, therapy sessions, assessments, and day-to-day operations.

• Working On Your Business: Strategic planning, marketing, finances, compliance, and staff development.

To grow your practice, allocate time for business development, financial planning, and leadership tasks.

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It means taking time out from your technical expertise in being a speech pathologist to look at your business from a different perspective and see how it can be improved.  In fact, the aim of working ON the business is that you have systems and processes set up so the business continues to function according to your integral values while you do less of the technical work.  

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You'll be able to employ staff and grow your business to serve the community's psychological needs.  It's called scalability.

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Cash Flow & Expense Management

Maintaining a healthy cash flow ensures your practice remains profitable. Key tips include:

• Budgeting: Track income and expenses to ensure profitability.

• Billing & Payments: Use efficient invoicing systems to avoid payment delays.

• Expense Deductions: Claim tax deductions for rent, equipment, insurance, marketing, and professional development.

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Compliance & Accreditation

Ensure your practice meets legal and professional standards, including:

• Speech Pathology Australia (SPA) Membership – Required for private health fund rebates.

• NDIS Provider Registration – If offering NDIS-funded services.

• Workplace & Employment Laws – Compliance with Fair Work Australia for staff.

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Need Help Managing Your Finances?

Running a speech pathology practice requires sound financial management. Seeking professional accounting advice can help you navigate tax, GST, payroll, and business growth strategies to ensure long-term success.