Medical and dental practice valuations for Melbourne practice owners.
For selling or buying a clinic, bringing in or buying out a practitioner, moving the practice between family entities, and retirement. Fixed fee, set by turnover.
A Melbourne medical or dental practice is worth what a buyer would pay for the earnings that stay once the selling practitioner steps back. Our valuers work out how much of the patient base belongs to the practice rather than to a named clinician, set practitioner pay at a market rate, and look closely at how the service-fee and contractor arrangements are set up. That last step matters in Victoria because the State Revenue Office can treat payments under practitioner contracts as wages for payroll tax.
What a buyer of a Melbourne practice is paying for
Patients often follow a practitioner, not a brass plate. A clinic in Box Hill or Brighton where three GPs or dentists share the books is a different asset from a solo surgery where one person sees most of the patients. The valuation separates goodwill that stays with the practice (the location, the systems, the recall list, the staff and the team of practitioners) from goodwill that leaves with a person. It then tests the lease, because a medical centre's fit-out and rooms are hard to move, and the equipment, which can be a large part of value for a dental surgery with several chairs and imaging.
Payroll tax on practitioner contracts in Victoria
The SRO says contractor arrangements between a medical centre and its practitioners may be a relevant contract, and where they are, payments to the practitioners are deemed to be wages and subject to payroll tax. From 1 July 2025 Victoria exempts wages paid by GP businesses to employee and contractor GPs for fully funded GP work, which is aimed at practices that bulk bill. The SRO says that exemption does not extend to dentists or allied health businesses. For a valuation this goes to maintainable earnings and risk: a buyer wants to know whether past periods are settled and what payroll tax will cost from here. The valuer records the position your accountant gives us. Whether payroll tax applies to your practice is a question for your accountant or the SRO, not the valuer.
When Melbourne practices ask for a valuation
- ·Sale of a clinic to a practice group or an incoming practitioner
- ·An associate GP or dentist buying into the practice
- ·A principal leaving and the remaining owners buying their share
- ·Moving the practice between a family trust, company or super fund
- ·Retirement and succession planning
- ·Market value evidence for small business CGT concessions on exit (your accountant applies them)
Common questions.
Does it matter that our practitioners are contractors, not employees?+
Yes. It changes who bears costs, how secure the revenue is if a practitioner leaves, and whether there is a payroll tax question. The SRO looks at medical centre arrangements case by case. The valuation sets out the arrangements as they stand and the position your accountant has taken, so a buyer can see what they are inheriting.
Is a bulk-billing clinic valued differently from a private-billing one?+
The method is the same, but the inputs differ. Billing mix affects average fees, patient numbers per practitioner and, for GP clinics, how much of the work may sit inside Victoria's payroll tax exemption for fully funded GP work. The valuation uses your own billing history rather than a rule of thumb.
Do you value physiotherapy, psychology and other allied health practices?+
Yes. The framework is the same: separate practice goodwill from personal goodwill, normalise owner pay, test the lease. What changes is how much new work depends on doctors sending patients and how easily clients move to a new clinician.
How long does it take and what does it cost?+
The fee is fixed before work starts and set by annual turnover: $1,495 + GST under $2 million, $2,495 + GST for $2 million to $3 million, $3,495 + GST for $3 million to $10 million, and a written quote above $10 million. Small reports take 2 business days and medium and large reports 3 business days, counted from when payment and all the information we need are in.
- ·Medical industry (payroll tax), State Revenue Office Victoria
- ·Relevant contracts: medical centres (public ruling), State Revenue Office Victoria
Talk to a valuer
Tell us what you need valued.
A fifteen-minute call confirms the package, the fixed fee and the delivery date, before you commit to anything.
03 8375 4177Mon to Fri, 9am to 5:30pm Melbourne time
Send the form and we reply within one business day. No documents needed to start.
Small Business Valuation
$1,495 + GST
For a business with annual turnover under $2 million. Signed report in 2 business days. Delivery time starts once payment and all required information have been received. The fee is fixed in writing before we start and never tied to the outcome.
Larger business? Tell us in the form and we recommend the right package. All fees
Last reviewed 10 November 2026 by Business Valuations Melbourne, Level 7, 55 Collins Street, Melbourne.