Tax and accounting for physiotherapists.
Whether you're contracting to a clinic, running your own rooms, or doing home and aged-care visits, you can generally claim your treatment equipment, indemnity insurance and CPD against your physio income, and the contractor-versus-employee question at the clinic you work from is worth getting right early. This guide covers what physiotherapists typically claim, how GST applies to treatment versus retail products, and how Medicare and private health billing reconcile into Xero. We're Brisbane based and work with physiotherapists across Australia.
Updated July 2026 · Reviewed by the LINK Advisors team
What physiotherapists can claim.
Ordered by typical value. Every claim still has to pass the ATO's tests: you paid for it, it relates to earning your income, and you can show a record.
Treatment tables and clinical equipment
Treatment tables, ultrasound units and exercise equipment used in your practice are generally deductible, either claimed outright or depreciated depending on cost - check the current instant asset write-off threshold with us.
AHPRA registration and indemnity insurance
Your registration fee and professional indemnity insurance are generally deductible as core costs of practising.
Clinic room hire or rent
Room hire or rent paid to a practice owner for the space you treat patients in is generally deductible.
CPD and professional association membership
Continuing professional development courses and Australian Physiotherapy Association membership fees are generally deductible.
Practice management software
Subscriptions to Cliniko, Halaxy, Nookal or similar clinical software are generally deductible.
Work vehicle for home and aged-care visits
Your vehicle used to travel between patients for home or aged-care visits is generally deductible for its business-use portion under the logbook or cents-per-kilometre method.
Treatment consumables
Tape, theraband and other supplies used up during treatment sessions are generally deductible.
Retail stock supplied to patients
Braces, supports and similar products you sell to patients are generally deductible as a cost of goods, and GST applies separately on their sale.
Mobile phone and data
The work-use portion of your phone and data for scheduling and patient contact is generally deductible.
Professional indemnity and public liability insurance
Premiums tied to your treatment work are generally deductible.
GST and BAS, done right.
Physiotherapy treatment is generally GST-free when it's supplied by a recognised physiotherapist as appropriate treatment for the patient. Where you're running group exercise classes, wellness sessions or programs that aren't treating a specific condition, that line can blur, and it's worth confirming the treatment is genuinely GST-free rather than assuming every session in your diary qualifies.
Selling braces, theraband, pillows or other products to patients is a taxable supply of goods, separate from the GST-free treatment itself, so retail sales need their own tax code rather than being bundled into the session fee.
Medicare and private health fund rebates paid to the patient, or claimed on their behalf, don't change the GST treatment of your fee - the GST-free status turns on the nature of the treatment and who provides it, not on who's picking up the bill.
The right structure for the work.
Physios contracting to a clinic are often treated as employees for practical purposes even where the paperwork says contractor, and the ATO looks at the whole relationship rather than just the label on the agreement. As you take on your own clients, add other physios, or move from renting a room to owning the clinic, a company structure usually starts to make more sense for the cleaner separation of business and personal risk. Worth revisiting as your role shifts from contracting under someone else to running the business yourself.
Run the work, we run the numbers.
Cliniko, Halaxy and Nookal run your bookings, clinical notes and Medicare or private health claiming, and connecting them properly to Xero means your session income, rebates and retail sales land in the right place without manual reconciliation. We also help clients keep Medicare and private health billing lined up against what's actually been paid, since gaps there are easy to miss without a system watching for them.
Frequently asked questions.
Am I a contractor or an employee at the clinic I work from?
It depends on the whole relationship, not just what your agreement calls you, factors like who sets your hours, who owns the equipment and how much control the clinic has all matter. We can review your specific arrangement.
Do I charge GST on my treatment sessions?
Generally no, physiotherapy treatment supplied as appropriate care for the patient is GST-free. Group classes or wellness programs that aren't treating a specific condition are worth double-checking.
What about GST on braces or theraband I sell?
That's generally a taxable sale of goods, separate from your GST-free treatment fee, so it needs its own tax code in your invoicing.
Can I claim my treatment table and equipment?
Yes, generally, either claimed outright or depreciated depending on cost. Keep the receipt and a note of what it's used for.
Should I incorporate as I take on other physios?
It's worth reviewing once you're bringing on staff or associates rather than working solo, since a company structure often suits the added risk and complexity better than staying a sole trader.
Talk to an accountant who knows physiotherapist businesses.
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