Starting your own private practice is a major milestone. It gives you control, flexibility, and the opportunity to build long-term wealth. But it also comes with financial and legal complexity that can’t be overlooked. Getting the foundations right early will save you time, stress, and significant cost down the track.
Your business structure is one of the most important decisions you’ll make when setting up your medical practice. It determines how you’re taxed, how your assets are protected, and how easily you can grow or bring in partners later.
There’s no one-size-fits-all approach, but most practitioners will choose between:
A common mistake is choosing the simplest option without thinking about future growth. The right structure should not only suit your current situation, but also your long-term goals, including scaling, asset ownership, and succession.
Moving into private practice means moving from a salary to managing your own tax obligations. This shift can catch many practitioners off guard, and tax and compliance obligations can be complex to navigate when you leave salaried work under Australian law.
You’ll typically need to manage:
Tax is often your single largest expense, so it’s critical to plan ahead. A simple but effective habit is setting aside a portion of your income as you earn it. This avoids cashflow pressure when tax bills fall due.
It’s also important to keep accurate records from day one. Using cloud-based accounting software makes this significantly easier and gives you real-time visibility over your financial position.
One of the biggest misconceptions of starting a new private practice is that you can worry about a budget later, when in reality a medical clinic can be capital intensive from day one. In Australia, opening practices or clinics can cost anywhere from $150,000 to $500,000+, depending on whether you are working with an existing site or funding a fit-out from scratch. These high upfront costs are just one reason why a strong business plan and budget are important for long-term success.
A strong budget should:
Without a budget, it’s difficult to know whether your practice is performing as expected or where adjustments need to be made.
Running a successful private practice is about building a business that runs efficiently, with the right people and technology in place.
Key essentials include:
When hiring staff, hire the right staff who align with the clinic’s values and understand the importance of their work. Onboarding should comply with local healthcare employment guidelines, and employment contracts should be prepared because employer obligations differ for permanent employees or contractors in Australia.
Importantly, focus on what you do best. Your role is to deliver high-quality clinical care, not to manage every aspect of the business yourself. Surrounding yourself with experienced advisors, including accountants and lawyers who understand medical practices, is critical.
Private practice introduces new risks that need to be actively managed. Protecting both your business and personal financial position should be a priority.
Key considerations include:
Risk management creates a stable platform to support your practice. These protections help reduce legal and financial risk across different aspects of the practice.
Setting up your practice is just the starting point. To build a sustainable and valuable business, you need a clear plan for growth. A practical marketing plan should explain how you'll promote your services, with an easy-to-navigate website that helps potential clients understand fees, contact details and what you offer. It should also consider SEO and a compliant social media presence so people can find your practice more easily in a changing healthcare environment. Brand-building can also come from local advertising, community engagement and strong referral networks with allied health professionals.
When choosing a location, look for the right demographics, competition profile, visibility and access to public transport. Being close to pharmacies or hospitals can also support referrals and improve the patient experience.
Small, consistent improvements across these areas can have a significant impact over time.
Setting up a private practice is more than a clinical decision, it’s a business strategy that shapes your financial future.
By getting your structure right, understanding your obligations, budgeting effectively, and building strong systems, you set yourself up for long-term success.
Done well, your practice will become a powerful vehicle for growth, stability, and financial freedom. Our specialist medical division has helped countless doctors start and grow their own private practices. With over 70 years of experience supporting medical professionals, we are ready to set you up for financial success. Contact our expert team today.