Description
Discover essential tax deductions for psychologists in Australia to maximise your practice’s financial health in 2025.
Running a psychology practice in Australia — whether you’re a solo practitioner or managing a growing team — comes with unique tax opportunities and responsibilities. As a business owner, understanding which expenses you can claim is key to reducing tax, increasing profit, and staying compliant with the ATO.
Here are the most relevant tax deductions and strategies tailored specifically for psychology business owners.
Clinic & Office Expenses
- Rent or lease of consulting rooms or clinic spaces
- Utilities: electricity, water, cleaning
- Office furniture: chairs, desks, therapy room decor
- Stationery and supplies: notepads, test kits, sensory tools
Staff & Contractor Costs
- Employee wages and superannuation
- Contractor payments
- Payroll software and STP compliance
- Staff professional development and training
Technology & Software
- Practice management systems (e.g., Halaxy, Power Diary, Cliniko)
- Telehealth subscriptions (Zoom Pro, secure messaging apps)
- Website and booking systems
- Cloud storage and data protection services
Marketing & Branding
- Website development and hosting
- SEO, paid advertising, and social media marketing
- Logo design, photography, and business cards
Travel & Professional Development
- Conference travel (airfares, accommodation, meals)
- Self-education courses relevant to your practice
- Registration fees for workshops and seminars
Professional & Legal
- Professional indemnity and public liability insurance
- AHPRA registration and APS membership
- Legal fees and accounting services
- Business advisory or coaching for growth planning
Business Tax Strategy Essentials
- Choosing the Right Structure: Sole trader, company, or trust? Each has different tax implications and protections. A review could lead to significant savings.
- GST Registration: If your turnover is $75,000 or more, you’re required to register for GST. Some practices benefit from early registration depending on expenses.
- Instant Asset Write-Off: Eligible assets (e.g., laptops, therapy tools, furniture) can often be written off in the year of purchase. Limits and eligibility rules apply.
- Personal vs Business Use: Ensure mixed-use items like cars or mobile phones have proper logs or business-use estimates. Only the business portion is deductible.
- Employees vs Contractors: Misclassifying workers can cause major compliance issues. We can help you get this right.
- Non-Deductible Expenses to Watch:
- Entertainment (e.g., meals with alcohol or social functions)
- Personal development courses not directly related to your professional duties
- Home renovations, even if they include a home office, unless strict ATO rules are met
Get your deductions list emailed to you as well as a Bonus download: EOFY Tax Checklist for Psychology Business Owners
We specialise in accounting for psychologists and mental health professionals across Australia, so talk to us about your accounting and bookkeeping need. Save time and money: 100% accurate books + on time lodgement from only $195 a month, no surprises, and no lock in contracts you get:
- Year-round free advice
- Tax and accounting into one package
- Your own dedicated bookkeeper and tax agent
