How to set your consulting fees as a new private practitioner in Australia. Fee benchmarks, bulk-billing vs private, and practical steps for allied health professionals.

Setting Your Consulting Fees: A Guide for New Private Practitioners in Australia

You've got the qualifications, the registration, and a room to see clients. Now comes the question that makes most new practitioners sweat: what do I charge?

Set your fee too low and you'll burn out before you build momentum. Set it too high and you might scare off your first clients. The sweet spot exists — and it's based on data, not guesswork.

This guide covers fee benchmarks by profession and city, the fee versus bulk-billing decision, and how to adjust as you grow your practice. If you're just starting out in private practice, this is the practical starting point you need.

Section 1 — The Landscape: What Australian Practitioners Charge

Fee setting in Australian private practice varies significantly by profession, location, and experience. There's no single "right" number, but there are clear benchmarks.

The Australian Medical Association (AMA) publishes an annual list of recommended fees for medical services. For allied health, the gap between the Medicare rebate and the private fee can be substantial. Here are typical ranges for a standard 45–50 minute consultation in 2025:

Profession	Typical Fee (AUD)	Medicare Rebate (AUD)	Gap
General Practitioner (private)	80–110	42.85 (standard)	37–67
Clinical Psychologist	200–260	88.25 (under GPMP)	112–172
General Psychologist	160–220	88.25	72–132
Physiotherapist	80–120	21.65 (if eligible)	58–98
Occupational Therapist	140–200	56.00	84–144
Dietitian	120–160	56.00	64–104
Speech Pathologist	130–180	56.00	74–124

These are national averages. In Sydney's inner suburbs, you might charge at the higher end; in regional centres like Wagga Wagga or Ballarat, you'd likely be closer to the lower end. For example, a physiotherapist renting a part-time consulting room in Brisbane typically charges AUD 90–110 per session, while a clinical psychologist in Melbourne's inner east can command AUD 240–280.

The key takeaway: your fee should sit somewhere between "what the market will bear" and "what you need to sustain your practice."

Section 2 — Fee vs Bulk-Billing: What You Need to Know

This is the most consequential decision you'll make. Here's the breakdown.

Private Fee (Full Fee)

You set your rate. The client pays you directly and claims the Medicare rebate themselves. You set the fee, the client pays the full amount, and they claim the rebate from Medicare. This gives you the most income per session but requires clients to have the cash upfront.

Best for: Practitioners in high-demand areas, specialties with long waitlists, and those who want maximum earning potential.

Bulk-Billing

You accept the Medicare rebate as full payment. The client pays nothing out of pocket. You bill Medicare directly. This typically means lower income per session but can fill your schedule faster.

Best for: New practitioners building a client base, those in lower-income areas, or practitioners who prioritise volume over rate.

Mixed Model

Most successful private practitioners use a blended approach. You might bulk-bill for certain clients (healthcare card holders, children) while charging a private fee for others. This is the most common and sustainable model.

A 2024 survey by the Australian Psychological Society found that 68% of private practice psychologists use a mixed model, with an average gap of AUD 85–120 per session.

Real scenario: Sarah, a dietitian renting a room in Geelong, charges AUD 140 for standard consultations but bulk-bills clients with chronic disease management plans. She sees 25 clients per week — 10 bulk-billed and 15 private. Her weekly gross is approximately AUD 2,900, compared to AUD 1,400 if she bulk-billed everyone.

Section 3 — Practical Steps to Set Your Fee

Step 1: Research your local market

Search for practitioners in your field within a 5-10km radius of your consulting room. Look at their websites. What do they charge? If you're renting a room in Sydney's Inner West, don't base your fee on what a practitioner charges in the Blue Mountains.

Check the AMA fee schedule for medical practitioners. For allied health, the relevant professional body (APS, APA, DAA, SPA) often publishes fee guidance.

Step 2: Calculate your minimum viable fee

Your fee must cover:

Room rental (typically AUD 40–80 per session for part-time rooms)

Insurance (public liability, professional indemnity — roughly AUD 15–25 per session)

Practice software, HICAPS terminal, phone, internet

Superannuation, tax, and your own income

A simple formula: (Total monthly costs + Desired monthly income) ÷ Number of billable sessions = Minimum fee per session.

Example: If your costs are AUD 2,000/month and you want AUD 6,000/month net, that's AUD 8,000 total. At 20 billable sessions per week (80/month), you need AUD 100 per session just to break even on that target.

Step 3: Set a fee that leaves room to grow

Start slightly below market average for your area, then increase after 6–12 months as you build reputation and referrals. A common strategy: start at AUD 10–15 below the local median, then raise by AUD 10 every 6–12 months until you hit the market ceiling.

Step 4: Communicate your fee clearly

Display your fees on your website and in your waiting room. Explain your cancellation policy upfront. Clients respect transparency — they don't respect surprises.

Section 4 — Key Questions to Ask Before Committing

What do three other practitioners in my field within 5km charge? This is your real market benchmark, not a national average.

What is my minimum viable fee based on my actual costs? Don't guess — calculate it. Include room rental, insurance, software, and your desired income.

Will I offer a sliding scale or bulk-billing for certain clients? If so, decide the criteria now (healthcare card, pensioners, students) so you're consistent.

How will I handle fee increases with existing clients? A 30-day notice period is standard. Grandfathering long-term clients at old rates is common and builds goodwill.

Does my room rental arrangement allow me to set my own fee? If you're subleasing from an established practice, check whether the practice has a standard fee policy.

CTA

Setting your fee is one of the first business decisions you'll make as a private practitioner. The next is finding a consulting room that suits your budget and schedule. Browse consulting rooms for rent across Australia or explore rooms in your city to find a space that supports your new practice. For a broader view of building your practice from the ground up, read the full guide: Building a Successful Healthcare Private Practice: The Business Guide for Australian Practitioners.