What are the PSI rules and do they apply to my healthcare practice?

Personal Services Income (PSI) rules apply if more than 50% of your income comes from your personal skills, knowledge, or efforts. For most medical and allied health practitioners, PSI rules apply — which can limit your ability to split income through a company or trust. We assess your specific situation and advise on the most compliant and tax-effective approach.

Are aged care services subject to GST?

Most residential aged care and home care services are GST-free under Division 38-B of the GST Act. However, some services provided to aged care residents may be taxable. Getting this classification right is critical for your BAS accuracy and ATO compliance.

What award covers aged care workers?

Most aged care workers are covered by the Social, Community, Home Care and Disability Services Industry Award (SCHADS Award) — one of Australia's most complex modern awards. We manage payroll compliance, penalty rates, and superannuation obligations under the SCHADS Award.

Can I use an SMSF to purchase my practice premises?

Yes. An SMSF can purchase commercial property — including your practice premises — and lease it back to your practice at market rent. This is a popular strategy for healthcare practitioners: your practice pays rent to your SMSF (deductible to the practice), and the rental income is taxed at 15% inside the SMSF (or 0% in pension phase).

What is the Support at Home program and how does it affect my accounting?

The Support at Home program replaced the Home Care Package program from 1 July 2025. It introduces new funding categories, assessment processes, and provider obligations. We help aged care providers understand the financial implications of the new program and ensure their accounting systems are correctly configured.

Aged Care & Healthcare Accountant Melbourne | Elite Accounting Solutions

The aged care and healthcare sector is one of Australia's most complex industries from a tax and compliance perspective. With government funding models, NDIS crossover, GST-free supplies, Personal Services Income (PSI) rules, and strict employment obligations — healthcare businesses need an accountant who truly understands the sector.

At Elite Accounting Solutions, we work with a wide range of healthcare and aged care clients — from solo GPs and allied health practitioners to residential aged care facilities, home care providers, and multi-site healthcare groups. We understand the unique financial pressures and compliance obligations your business faces.

Who We Help in Healthcare & Aged Care

General practitioners (GPs) and medical centres
Specialists — surgeons, physicians, psychiatrists, radiologists
Allied health practitioners — physiotherapists, occupational therapists, psychologists, dietitians
Dentists and dental practices
Residential aged care facilities (RACFs)
Home care package providers
NDIS registered and unregistered providers
Nursing agencies and healthcare staffing businesses
Pathology and diagnostic imaging practices
Pharmacy owners and dispensary businesses

Aged Care Accounting Services

The aged care sector operates under a complex government funding framework — from the Basic Daily Fee and Means-Tested Care Fee to the Home Care Package program and the new Support at Home program launching in 2025. Getting the accounting right is critical to financial sustainability.

Aged care funding model accounting — ACFI, AN-ACC, and Support at Home
Resident trust account management and compliance
Payroll and award compliance for aged care workers (SCHADS Award)
GST treatment of aged care supplies — exempt, GST-free, and taxable
Business structuring for aged care operators — company, trust, or partnership
Cash flow management and government subsidy reconciliation
Compliance with the Aged Care Quality and Safety Commission requirements
Acquisition and sale of aged care businesses — due diligence and tax structuring

Healthcare Practice Accounting

Medical and allied health practices face a unique set of tax challenges — particularly around Personal Services Income (PSI) rules, practice entity structuring, and the treatment of Medicare and private billing income.

Personal Services Income (PSI) rules — when they apply and how to navigate them
Practice entity structuring — service trusts, practice companies, and practitioner entities
Income splitting strategies for medical couples and family members
Superannuation strategies for high-income practitioners
Practice sale and succession planning — CGT concessions and retirement planning
Bulk billing vs private billing — tax implications and cash flow management
Equipment and fit-out deductions — instant asset write-off and depreciation
Locum and contractor arrangements — avoiding sham contracting issues

PSI Rules — A Critical Issue for Healthcare Practitioners

Many healthcare practitioners are caught by the Personal Services Income (PSI) rules without realising it. If more than 50% of your income comes from your personal skills, knowledge, or efforts — rather than from a business structure — the ATO may treat that income as your personal income, regardless of what entity it is paid to. This can significantly limit your ability to split income or retain profits in a company.

We help practitioners understand whether PSI rules apply to their situation and structure their practice correctly to achieve the best possible tax outcome within the rules.

NDIS & Aged Care Crossover

Many healthcare providers operate across both the NDIS and aged care sectors — providing services to participants under both funding streams. This creates complex GST, invoicing, and compliance obligations. We have deep experience in both sectors and can help you navigate the crossover effectively.

View our dedicated NDIS Accountant page

Superannuation Strategies for Healthcare Professionals

High-income healthcare professionals have excellent opportunities to build wealth through superannuation. With concessional contribution caps of $30,000 per year (2025–26) and carry-forward provisions allowing up to $120,000 in catch-up contributions, super remains one of the most tax-effective wealth-building tools available.

We work with many healthcare professionals on SMSF strategies — particularly those who want to invest their super in commercial property (such as their own practice premises) through a Limited Recourse Borrowing Arrangement (LRBA).

Related Specialisations

Healthcare and aged care providers often have needs that span multiple specialist areas:

NDIS Providers

Many aged care and healthcare providers also deliver NDIS services — we handle the complex GST and compliance crossover.

Medical Practitioners

GPs, specialists, and allied health practitioners have unique PSI and practice structuring needs.

SMSF

High-income healthcare professionals can use an SMSF to purchase practice premises and build retirement wealth tax-effectively.

Healthcare and aged care is what we know. Book a free consultation today and let our specialist team review your practice structure and tax position.

Why Choose Elite Accounting Solutions

Industry Expertise

Over 40 years of niche industry experience means we understand the unique tax, compliance, and business pressures your industry faces.

Personalised Service

We get to know your business personally. No call centres, no juniors — you deal directly with experienced accountants who care about your outcomes.

Proactive Guidance

We don't just do compliance — we proactively identify tax-saving opportunities and strategies specific to your industry throughout the year.

Clear Communication

We explain everything in plain English. No jargon, no surprises — just clear advice so you can make confident, informed financial decisions.

Aged Care & Healthcare Accountant