Starting a Private Practice in Australia: Finding Your First Consulting Room

You’ve got your AHPRA registration, a growing client list from word-of-mouth, and a spreadsheet of potential room hire options that all blur together. The biggest hurdle isn’t your clinical skills — it’s finding a space that doesn’t lock you into a three-year lease or cost more than you’ll earn in your first month.

This guide breaks down exactly how to find, evaluate, and secure your first consulting room in Australia — without the financial risk that sinks many early-stage practices.

What this guide covers

How the Australian consulting room rental market works for new practitioners

The real costs of renting by the hour, day, or session (with specific AUD figures)

A step-by-step framework to evaluate your options

Common mistakes that waste time and money

Answers to the questions every first-timer asks

Section 1 — The landscape: why private practice is booming (and why space is the bottleneck)

More Australian healthcare practitioners are moving into private practice than ever before. According to the Australian Institute of Health and Welfare, the number of registered psychologists in private practice has increased by over 30% in the last five years. Allied health practitioners — physiotherapists, occupational therapists, speech pathologists — are following the same trend, driven by the flexibility of the NDIS and private health insurance rebates.

But here’s the catch: the supply of suitable consulting space hasn’t kept pace. In Sydney’s Inner West, for example, a standard consulting room now rents for AUD 40–60 per hour, up from AUD 30–45 just two years ago. In Melbourne’s CBD, you’ll pay AUD 50–80 per hour for a room with a window and basic amenities.

The result? Many practitioners either rush into a lease they can’t afford, or they work from home and lose credibility with clients who expect a professional setting.

The key insight: The most successful new practices don’t start with a lease. They start with a room hire agreement that gives them flexibility while they build their client base.

Section 2 — How it works: the four ways to secure your first consulting room

Option 1: Pay-per-session room hire (the most common starting point)

This is the default for most new practitioners. You pay for the room by the hour, half-day, or full day. You bring your own equipment and materials. The practice manager handles reception, billing, and cleaning.

Best for: Psychologists, counsellors, dietitians, and anyone with low equipment needs.

Typical cost: AUD 30–80 per hour depending on location and amenities.

What to look for:

A clear booking system (online or via a dedicated app)

Access to a waiting area and client bathroom

Internet that actually works (test it before you commit)

Storage for your files or equipment

Option 2: Sublease or shared practice

A more established practitioner rents you a room in their practice on a monthly or quarterly basis. You share the reception, waiting area, and sometimes the client base through referrals.

Best for: Practitioners who want a built-in referral network and a more permanent feel without a long lease.

Typical cost: AUD 800–2,500 per month for 2–3 days per week.

What to look for:

A written sublease agreement that clarifies liability and insurance

Clear boundaries around client data and confidentiality

A schedule that doesn’t clash with your peak hours

Option 3: Managed consulting suites

These are purpose-built spaces operated by a company that handles everything — from booking to cleaning to billing. You just show up and see clients.

Best for: Practitioners who want zero admin and maximum flexibility.

Typical cost: AUD 50–120 per hour (higher in premium locations like Sydney’s CBD or Melbourne’s Collins Street).

What to look for:

Check if the room is soundproofed (essential for mental health consultations)

Ask about cancellation policies — some charge 100% if you cancel within 24 hours

Verify that the suite is registered as a healthcare premises with your local council

Option 4: Leasing your own room (only when you’re ready)

A direct lease with a landlord. You’re responsible for fit-out, utilities, insurance, and ongoing maintenance.

Best for: Practitioners with a stable client base of 20+ clients per week and a clear growth plan.

Typical cost: AUD 300–800 per week for a small room in a suburban centre, plus outgoings.

What to look for:

A lease term of 12 months or less (avoid anything longer as a first-timer)

A rent review clause that caps increases

An exit clause that lets you assign the lease if you need to move

Section 3 — Costs & practicalities: what you’ll actually pay

The numbers below are based on real listings on HealthcareRooms and industry data from 2024–2025. They’re averages — expect variation based on exact location, room size, and included amenities.

Hourly rates by city (AUD)

What’s included (and what’s not)

Most room hire agreements include:

Room with desk, chair, and client seating

Access to a waiting area

Basic internet

Cleaning

Reception during business hours

Common extras you’ll pay for:

Carpark: AUD 10–25 per session

Storage: AUD 50–150 per month

After-hours access: 10–20% surcharge

Equipment rental (e.g., treatment table, assessment tools): AUD 5–20 per session

The hidden costs of starting private practice

Don’t forget these when you’re budgeting:

Section 4 — How to evaluate your options: a practical framework

Use this checklist when you’re comparing rooms. Score each option out of 5 for every criterion.

The five-point evaluation

Location and accessibility

- Is it within 15 minutes of public transport or major roads? - Is there parking for clients? (Crucial in suburban areas) - Does the building have wheelchair access?

Fit with your client base

- Does the room feel professional and calming? - Is it soundproofed enough for confidential conversations? - Can you personalise the space (e.g., add your own artwork or posters)?

Cost and value

- What’s the total cost per month based on your planned hours? - Are there any hidden fees (cancellation, cleaning, admin)? - Can you afford it on 50% of your projected client load?

Flexibility

- Can you increase or decrease your hours with short notice? - What’s the minimum commitment (one session, one month, one quarter)? - Can you sublet or swap rooms with another practitioner?

Admin support

- Does reception handle client bookings and payments? - Is there a phone line or do you use your mobile? - Who manages client data and privacy?

A real-world scenario

Let’s say you’re a psychologist starting out in Melbourne’s inner north. You plan to see 15 clients per week at AUD 200 per session. Your weekly revenue target is AUD 3,000.

You find a room in Fitzroy for AUD 55 per hour. You book 18 hours per week (3 full days). That’s AUD 990 per week in room hire — 33% of your revenue.

Add insurance, software, and marketing, and your total overhead is about 45% of revenue. That’s tight but workable. If you only see 10 clients per week, your overhead jumps to 60% — and you’re losing money.

The rule of thumb: Don’t let room hire exceed 30% of your projected revenue at 50% capacity. If it does, look for a cheaper room or reduce your hours.

Section 5 — Common mistakes to avoid

1. Signing a lease before you have clients

The fastest way to kill your practice is a fixed monthly cost you can’t cover. Start with pay-per-session or a short-term sublease. You can always upgrade once you’ve got a steady client base.

2. Choosing a room based on price alone

A cheap room in a bad location will cost you more in lost clients than you save in rent. If your ideal client won’t travel there, it’s not cheap — it’s expensive.

3. Ignoring soundproofing

This is the #1 complaint from mental health practitioners. If you can hear the practitioner next door, your clients can too. Ask to sit in the room while another session is running before you commit.

4. Not checking the internet speed

Slow internet kills telehealth sessions and frustrates clients who expect to fill out forms online. Test it with a speed test app during peak hours.

5. Overlooking the cancellation policy

Some rooms charge 100% if you cancel within 24 hours. If a client cancels at the last minute, you’re paying the room hire out of pocket. Look for a 48-hour cancellation policy or a room that allows same-day swaps.

6. Not reading the fine print on insurance

Some practice managers require you to list them as an additional insured on your professional indemnity policy. This can add AUD 100–300 per year. Check before you sign.

Section 6 — FAQ

Q: How many hours should I book per week as a new practitioner? A: Start with 8–12 hours (1–2 full days). That gives you time to build your client base without burning cash on empty room time. You can always add more hours once you’re fully booked.

Q: Can I use a room for telehealth only? A: Some rooms allow it, but most prefer you to see clients in person. If you’re purely telehealth, a virtual office service might be cheaper. If you need a physical address for your AHPRA registration, look for a room that offers mail handling.

Q: Do I need my own ABN and GST registration? A: Yes, you need an ABN to rent a room as a sole trader. If your annual turnover is over AUD 75,000, you also need to register for GST. Most new practitioners start below this threshold.

Q: What insurance do I need? A: Professional indemnity insurance is mandatory. Most practice managers also require public liability insurance (AUD 10–20 million cover). Check with the room provider before you book.

Q: How do I find rooms that aren’t listed on major platforms? A: HealthcareRooms lists the majority of available rooms in Australia’s major cities. Some rooms are also advertised on local practitioner Facebook groups or through word-of-mouth. But a platform gives you the widest choice and the ability to compare prices and amenities side-by-side.

Ready to find your first consulting room?

The best time to start looking is now — while you’re building your client base, not after you’ve signed a lease you can’t afford. Browse consulting rooms across Australia to see what’s available in your city. Filter by location, price, and amenities to find a space that fits your practice and your budget.

If you’re in Sydney, start with rooms in the Inner West or Melbourne’s inner suburbs. For regional areas, check out rooms on the Gold Coast or Canberra. Every room on HealthcareRooms is listed by a verified practice manager, so you know exactly what you’re getting.

Your first room doesn’t have to be perfect — it just has to get you started. Once you’re in, you can always move up.