Starting your Own
Psychology Business
Start Your Solo Psychology Business
Starting your own psychology business is exciting, and a little daunting.
You’re stepping into independence, shaping your own work, and creating a practice that reflects your values.
You’re also a business owner navigating tax, business structure, registrations, systems, marketing, and compliance.
This page gives the outline of the 15 Steps to Successfully Set up a Solo Psychology Practice. (For more detail download the pdf).
We put it together after speaking to hundreds of Australian psychologists and realising the lack of straightforward, practical information for psychologists wanting to start their own business.
It's a brief guide, so if you have any questions, get in touch.
We offer a FREE 90-minute no-obligation initial meeting for psychologists and subsequent one-on-one meetings are also available for a fee.
Your practice DNA is the foundation of your business.
It includes:
•your WHY- this will become the foundation for every decision you make and will help you stay motivated
•your values – these values represent what you stand for and will shape the culture of your practice
•your personal, career, business, and community goals
Together these form your Practice DNA and they shape everything about your business, including your fees, your boundaries, your marketing, your client experience, and your long term direction.
1. Establish Your Practice DNA
Your purpose, values and goals become the DNA of your business.
2. Make a Budget & Financial Forecast
To build a realistic budget and financial forecast, start with the key three numbers that shape your revenue:
how many sessions you plan to complete each week
your average fee per session
the number of weeks you intend to work each year
These form the basis of your income projections.
Next, consider your start‑up capital. Most solo psychology businesses begin with $10,000–$20,000 to cover initial costs and provide a buffer.
List your start‑up costs, such as registration fees, insurance, equipment, software, marketing, branding, and any initial rent or bond.
Then outline your ongoing costs, including room hire, utilities, software subscriptions, memberships, insurance renewals, bank fees, marketing, and CPD.
Use this information to build your forecast:
sessions per week × average fee × working weeks per year = projected revenue
From this, subtract your ongoing costs to estimate your expected profit.
Remember to set aside a portion of your income for tax.
A clear forecast helps you understand your financial goals and plan for sustainable growth.
3. Professional & Legal Requirements
Before you begin:
ensure your qualifications are APAC‑accredited
maintain AHPRA registration
meet CPD requirements
understand and follow the Psychologists Code of Conduct
This ensures your practice is ethical, compliant, and safe.
4. Consult People in the Know
Starting a practice is easier when you have support.
Speak with:
•an accountant who understands psychology practices
•peers who have done it before
•your supervisor
•your partner and family
In addition to these conversations it can help to seek advice from four distinct types of people.
The Exampler—someone who has already achieved what you aspire to do. They can show you what success looks like and the steps to get there.
The Anti-Goal—a person whose situation or choices you want to avoid. Learning from their mistakes can be just as valuable as following a positive example.
The Truth Teller—someone who will give you honest, unfiltered feedback, even when it’s uncomfortable. Their perspective can help you identify blind spots and stay grounded.
The Unbiased—a person with no vested interest in your decisions, who can provide objective advice without emotional or financial influence.
Ready to talk over your business goals?
If you found your free 90-minute initial meeting helpful, book a one-on-one business mentor meeting with Fairuz.
It's a chance to discuss the practicalities of running your own business with an accountant and business mentor who specialises in psychology businesses.
$300 for 60 minutes / $150 for 30 minutes
Fairuz Azli, Accountant for Psychologists
5. Choose Your Business Structure
The business structure you choose affects tax, liability, and flexibility.
Common options for solo Psychologist businesses are:
•Sole trader — simplest, lowest cost
•Company — more protection, more compliance
•Partnership — shared ownership
•Trust — complex, strategic
Choosing the right structure early prevents costly changes later.
6. Complete Your Registrations
You may need:
Tax File Number
ABN or ACN
Business name registration
Domain name registration
GST registration
Medicare Provider Number (if applicable)
If you have any staff you will also need:
Single Touch Payroll
Workers Compensation Insurance
See our article What You Need to Register When You Start a New Psychology Business.
7. Insurance Requirements
Essential cover includes:
•Professional Indemnity
•Public Liability
•Workers’ Compensation (if employing staff)
There are many other types of insurance available.
You might find our article Professional Indemnity Insurance for Psychologists helpful.
8. Define Your Services & Pricing
•Consider who your target clients will be (e.g.children, adults, disability services, aged care) and define your services accordingly.
•Analyse your expenses, Research market rates, and rates recommended by the APS and AAPi and set pricing that covers costs while remaining competitive.
9. Choose Your Location
Whether you choose a physical room or telehealth:
•ensure privacy
•ensure accessibility
•consider noise, lighting, and comfort
•ensure compliance with health and safety requirements
10. Financial & Taxation Matters
As a solo psychology business owner you'll have bookkeeping and tax responsibilities.
Set up:
•a dedicated business bank account
•a business savings account for tax
•a reliable bookkeeping system
•cloud-based accounting software (Xero, MYOB, QuickBooks) - talk to your accountant or bookkeeper about your business needs before choosing accounting software.
See our article Key Considerations for Psychologists Choosing Accounting Software
Olivia Crowhurst, Accountant
Kristy Tronnolone, Accountant
Jen Pedoc, Accountant
As a business owner you'll be responsible for keeping track of and paying:
Income Tax
Set aside a portion of every payment you receive. A good starting point is 25–30 percent, depending on your fee structure and income level.
How to Be Absolutely Prepared for Your Taxes is a helpful read.
PAYG Instalments for Psychologists
The ATO may require quarterly tax instalments, where you pay your tax in advance based on your previous year's income. Many new business owners are caught off guard by this.
Our article Avoid the Tax Instalments Trap explains how to prepare for it and use our Tax Calculator for Psychologists to keep things on track.
GST Registration for Psychologists
You must register for GST if your turnover reaches $75,000.
Although many psychology services are GST-free, some services provided by psychologists attract GST.
Our GST Comprehensive Guide for Psychologists and Quick GST Guidelines for Psychologists give an outline and if you have questions about your specific situation, we're happy to discuss it with you.
BAS (Business Activity Statement) Lodgements for Psychologists
If you are registered for GST, you must lodge a Business Activity Statement (BAS). Our bookkeepers and accountants are able to advise and assist with this. We've also made a BAS Guide for Psychologists.
With over 900 psychologist clients, we specialise in Accounting for Psychologists.
Lyka Pelayo, Bookkeeper & Accountant
Brooke Bandy, Bookkeeper
11. Practice Management System
A good system saves hours each week.
There are some excellent practice management systems available today.
Popular options:•Halaxy•Zanda Health (formerly Power Diary)•Cliniko•CorePlus•Splose•Nookal•Gentu
Look for:
•Medicare integration
•secure notes
•telehealth
•reminders
•reporting
•ease of use
Every practice is different, our article Software for your Psychology Business helps you to evaluate what might best suit you.
12. Policies & Documentation
Establishing clear policies and documentation is essential
for compliance, professionalism, and client trust.
At a minimum you’ll need:
•Privacy Policy
•Data Breach Response Plan
•Service Agreements
•Consent Forms
•Intake Forms
•Mandatory reporting knowledge
•WHS compliance
•Secure record keeping (7 years minimum)
Contingency Plan
13. Marketing & Client Acquisition
Marketing doesn’t need to feel salesy or pushy. You're sharing valuable information about important services.
Focus on:
•referral networks (GPs, psychiatrists, allied health)
•a clear, professional website
•consistent branding
•ethical social media
Remember, all marketing efforts must comply with AHPRA and APS advertising guidelines to maintain ethical standards.
14. Ongoing Professional Development
Stay compliant and confident by:
•tracking CPD
•engaging in supervision
•reflecting on your practice
•staying updated with ethical standards
15. Balance Working On & In Your Business
As a business owner you'll need to find a balance between working on your business and working in your business.
Working In Your Business: Client sessions, therapy, and direct service delivery.
Working On Your Business: Marketing, finances, strategy, and compliance.
Allocating time for both ensures sustainable business growth.
Bringing It All Together
Starting your own solo psychology business combines your clinical skills with the practicalities of running a business.
It's exciting, and it can be daunting.
You don't need to do it alone.
We're here to support you with the Business side of things.
Fill in the contact form and let us know how we can help.
Accountant for Psychologists
FREE
No-Obligation Meeting
Book a free, 90-minute no-obligation meeting with us today and experience the difference of working with a team who truly understands the finance side of psychology.
Meet us online
or
at our office
593 ANZAC Highway, Glenelg, South Australia.
We'll take the time to listen to your needs and work with you to build a path to success.
Let us help you reach your financial goals and focus on what you do best - helping others.
If you're ready to book your FREE 90-minute meeting now, click on the blue button.
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