What we handle for your practice
A psychology practice looks simple from the outside and is anything but once the money starts moving. The same session can be funded by Medicare, a client gap, a private health fund and sometimes a third party, all landing in your account on different timetables. Our job is to turn that into clean, reconciled books you can trust, so you can focus on your clients instead of your bank feed.
| Area | What we do |
|---|---|
| Medicare & Better Access | Reconcile the batched Medicare remittance against sessions, and split each session into the Medicare benefit and the client gap, so income is never double-counted |
| Gap & private billing | Match card and HICAPS settlements to takings from Halaxy, Power Diary or your practice software, posted cleanly to Xero |
| GST | Treat GST-free sessions correctly, flag any taxable third-party work, and advise on whether registering for GST is worth it under a service-fee model |
| Associate payroll | Set up PAYG, super and leave for employed psychologists, and pressure-test contractor arrangements for super and payroll tax risk |
| BAS & reporting | Lodge your BAS on time and give you simple, current numbers rather than a tax-time scramble |
The GST and service-fee question
Because psychology sessions are GST-free, most practitioners assume GST is not their problem. It often is. GST-free income still counts toward the $75,000 registration threshold, so a busy psychologist can be required to register even while charging clients no GST. And if you work from a practice that charges you a service or facility fee with 10% GST on top, registering lets you claim that 10% back as a credit, with no GST added to your clients. We work out whether it stacks up for your numbers. There is a full explanation in our guide to GST and service fees for psychologists.
Associates, super and payroll tax
Growth usually means a second psychologist, and that single decision, employee or contractor, drives PAYG, super, leave and payroll tax. A psychologist who uses your rooms, your bookings and your brand on hours you set is generally an employee. Even a genuine contractor can be owed super where the agreement is principally for their labour, and payments under a service agreement can attract payroll tax under the relevant-contract rules that state revenue offices now apply to health practices. We keep the payroll clean and the records defensible, and work alongside your accountant on the structure. See our guide to service agreements, super and payroll tax.
Your patient data stays in Australia
Psychology runs on sensitive information, and where your financial and client data lives matters. True Tally is a 100% Australian-based team, and your data is kept in Australia, never offshored. The people reconciling your Medicare and handling your payroll are here, under Australian privacy law, which for a practice built on client trust is not a detail to gloss over.
Want your Medicare, gaps and payroll handled, and your data kept onshore?
Book a free 20-minute callFixed monthly fees, unlimited questions. Or call 0468 159 950
Related
- Psychology practice bookkeeping: Better Access, gaps and GST
- Allied health bookkeeping
- Service agreements, super and payroll tax
- Employee cost calculator
General information only, not financial, tax or legal advice. Maintained by True Tally Bookkeeping, a Registered BAS Provider (26360186), reviewed October 2026.
Frequently asked questions
Are psychology sessions GST-free?
Yes. Psychology is a listed health service, so a session is GST-free when it is performed by a registered psychologist for the patient being treated. Third-party work, such as a medico-legal report or corporate EAP, can be taxable. GST-free session income still counts toward the $75,000 GST registration threshold.
Does a psychologist need to register for GST?
GST-free session income still counts toward the $75,000 turnover threshold, so a busy practitioner can be required to register even though they charge clients no GST. Below the threshold it is optional, but if you work under a practice that charges a service fee with 10% GST, registering lets you claim that GST back while your sessions stay GST-free.
How do I stop double-counting Medicare and the client gap?
Treat one session as one piece of income made up of parts: the Medicare benefit plus any client gap. Reconcile Medicare against its batched remittance and the gap against the bank feed, rather than recording the full fee and the rebate as two separate incomes.
Is an associate psychologist an employee or a contractor?
Usually an employee if they use your rooms, booking system and brand on hours you set, which brings PAYG, leave, super and award obligations. Even genuine contractors can be owed super under section 12(3) if the arrangement is principally for their labour, and payments under a service agreement can attract payroll tax under the relevant-contract rules.
Is my patient data kept in Australia?
Yes. True Tally is a 100% Australian-based team and your financial and patient data is kept in Australia, never offshored, so the people handling your books are here, under Australian privacy law.