WHAT'S A FAIR PERCENTAGE SPLIT FOR CONTRACTOR PSYCHOLOGISTS?

One of the most common questions I hear, from both contractor psychologists and practice owners, is: “What’s a fair percentage split?”

To be honest, it depends.

There’s no one-size-fits-all split because a fair arrangement needs to work for both the psychologist and the practice.

The right split reflects your career stage and independence as a psychologist, and the real costs, risk, and support the practice provides behind the scenes.

This is what I commonly see across the industry.

Typical Percentage Splits (Therapy Services)

Early Career: ~60% Psychologist / 40% Practice

From the psychologist’s perspective, this can feel like a big chunk, but early career roles usually come with significant support.

From the practice’s perspective, this split often covers:

• Client intake and ongoing admin

• Marketing and referral management

• Room hire and facilities

• Practice management systems

• Supervision, mentoring, and onboarding time

• Compliance, insurance, and business risk

  
  

When a practice is heavily involved in setting you up and supporting your growth, a 60/40 split is often reasonable.

Mid-Career: ~65% Psychologist / 35% Practice

At this stage, psychologists are more established and need less day-to-day support.

For the psychologist:

• Greater autonomy

• More consistent client load

• Fewer supervision requirements

For the practice:

• Lower time investment per contractor

• Continued responsibility for systems, facilities, staff, and overheads

• Ongoing business risk and compliance obligations

A 65/35 split often reflects this more balanced contribution.

Experienced:

~70% Psychologist / 30% Practice

This tends to suit highly experienced psychologists who:

• Bring their own clients

• Require minimal supervision

• Are largely self-directed

From the practice’s side, even at 30%, they are still covering:

• Rooms and utilities

• Admin staff and systems

• Marketing presence and brand

• Professional indemnity structures

• Business risk and governance

While the practice’s share is smaller, it must still be commercially viable to sustain the business.

Assessments and Reports

For assessments and report writing, splits often shift more in favour of the psychologist, commonly 70/30 or even 80/20.

Why this makes sense for both parties:

• Reports often require less admin and facility use

• Many psychologists complete them off-site

• Practice involvement is lower compared to therapy sessions

As a result, the practice’s costs are reduced, and the split adjusts accordingly.

Take Value into account

The percentage alone doesn’t tell the full story.  Value is an important consideration.

 For example:  If you bill $300,000 per year and pay 35% to the practice, that’s $105,000.

Is $105k reasonable?

It depends on what that $105k covers.From a psychologist’s point of view, it’s worth asking:

• How much admin do I not have to do?

• How much time do I save?

• How supported do I feel?

• How easy is it for me to focus purely on client work?

From a practice’s point of view, that same $105k may be funding:

• Admin wages

• Rent and outgoings

• Software and systems

• Marketing and referrals

• Supervision time

• Business risk, compliance, and cash flow volatility

  
  
  
  

If the practice delivers strong support, a well-run environment, and removes stress from your plate the value can absolutely stack up.

If not, it may be time for a conversation.

The Perception of Value

I often use this analogy when talking about percentage splits:

Think about booking a hotel.  Whether you choose a 3 star or a 5 star hotel you still have a place to stay for the night. Some people are happy with a 3-star hotel, while others willilngly pay more for 5-star accommodation because of their perceived value of comfort, service, ease and experience.

A practice split can work in a similar way.

Final Thoughts

There’s no universal “right” split.The best arrangements are:

• Transparent

• Commercially fair

• Sustainable for the practice

• Supportive and empowering for the psychologist

A healthy contractor relationship should feel like a win-win. Psychologists can focus on doing great clinical work and Practices can operate profitably and continue providing quality support.

If you’re unsure whether a current split is fair, from either side, book in to talk it through with me.  I’ve spoken to hundreds of contractors and practices over the years, and I understand the psychology industry and the business realities of private practice.   enquiries@sheridans.net.au