Social Work Practice Owners
Being a practice owner means you go one step further than being an excellent social worker. You'll need to think like a business person.
Owning a social work practice comes with unique financial responsibilities, from managing business expenses to ensuring long-term profitability.
This page covers essential financial considerations, including tax, cash flow management, and the balance between working on and in your business.
Business Structure & Registration
Choosing the right structure for your social work practice affects your taxes, liability, and operational flexibility.
Common structures include:
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Sole Trader – Simple setup with full control but personal liability.
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Company – Limited liability with more complex tax requirements.
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Partnership or Trust – Suitable for multi-owner practices with structured income distribution.
Regardless of your structure, you’ll need an ABN (Australian Business Number) and may need to register for GST if your revenue exceeds $75,000 per year.
Tax & GST Considerations
As a practice owner, you are responsible for managing your business taxes. Key tax obligations include:
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Income Tax: Pay tax on your profits, with possible deductions for business expenses.
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GST Registration: If your turnover is $75,000+, charge 10% GST on services and lodge a Business Activity Statement (BAS).
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Payroll Tax: If you employ staff, ensure you meet payroll tax thresholds in your state.
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Superannuation Contributions: Employers must pay 11% super for employees. If you're a sole trader, consider making voluntary contributions to your super.
Working On vs. Working In Your Business
Balancing client care with business management is one of the biggest challenges for practice owners.
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Working In Your Business: Direct client work, therapy sessions, assessments, and day-to-day operations.
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Working On Your Business: Strategic planning, marketing, finances, compliance, and staff development.
To grow your practice, allocate time for business development, financial planning, and leadership tasks.
It means taking time out from your technical expertise in being a social worker to look at your business from a different perspective and see how it can be improved.
In fact, the aim of working ON the business is that you have systems and processes set up so the business continues to function according to your integral values while you do less of the technical work.
You'll be able to employ staff and grow your business to serve the community's psychological needs. It's called scalability.
Cash Flow & Expense Management
Maintaining a healthy cash flow ensures your practice remains profitable. Key tips include:
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Budgeting: Track income and expenses to ensure profitability.
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Billing & Payments: Use efficient invoicing systems to avoid payment delays.
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Expense Deductions: Claim tax deductions for rent, equipment, insurance, marketing, and professional development.
Compliance & Accreditation
Ensure your practice meets legal and professional standards, including:
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Australian Association of Social Workers (AASW) Membership
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NDIS Provider Registration – If offering NDIS-funded services.
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Workplace & Employment Laws – Compliance with Fair Work Australia for staff.
Need Help Managing Your Finances?
Running a practice requires sound financial management.
We're here to help you navigate tax, GST, payroll, and business growth strategies to ensure long-term success.
Scalability
To achieve scalabililty you need a firm understanding of the 5 Elements of Business.
The 5 Elements of a Business
Starting a successful psychology business takes hard work, dedication, and the right framework. From my experience I've created a proven framework for success. This framework focuses on five key elements that are essential to the success of any psychology business.
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First, define your business values, vision, and goals. This sets the foundation for your Business DNA and guides all other decision-making.
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Next, establish effective systems and processes to streamline your operations and ensure consistent delivery of services.
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The people who make up your staff and support teams are a critical component of your business. Investing in the growth and development of your staff is essential for success. The other people vital to your success are your support teams, by that I mean people like your accountant, your bookkeeper, the doctors who refer clients to you, your supervisor, your lawyer etc.
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Your clients are the lifeblood of your business, and understanding their needs and wants is key to providing them with the best possible experience.
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Finally, pay close attention to your financials and numbers. Financial management is essential for the long-term success of your business, and having a clear understanding of your income, expenses, and cash flow is crucial.
Accountant for Social Workers
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