Dentists · Associates
Associate dentists: pay, ABN, tax and agreements
Most associate dentists we work with are contractors on a percentage of their billings. The norm is 40% excluding lab fees, but we see anywhere from 25% to 45%, and 35% is becoming the new standard as the cost of running a clinic goes up. Below is what we see in the agreements that cross our desk, and how we set new associates up.
By Inam Asiful
Senior Consultant, WeGrow Accountants · Director of a dental clinic in a metro region · Last reviewed 7 October 2026
Key points
- Associate rates we see: 25% to 45% of billings excluding lab fees. 40% is the norm, 35% is the emerging standard.
- Rising marketing and staffing costs are pushing clinics towards lower percentages.
- Most associates outside graduate and public roles are contractors on a service and facilities agreement (SFA).
- Start simple as a sole trader; move to a company or trust when your billings justify it.
- Read the agreement carefully and get anything you're unsure about checked before you sign.
What associate dentists are paid
Associate dentists are usually paid a percentage of what they bill. Across our clients, the rates look like this.
| Situation | Percentage of billings (excluding lab fees) |
|---|---|
| Busy clinic with a strong patient book | As low as 25% |
| Industry norm | 40% |
| Emerging standard | 35% |
| Busy clinic that's short of dentists | Up to 45% |
These ranges include corporate clinics as well as independent practices. The rate depends on the clinic's book. A busy clinic can keep the percentage low because the patients are already there. A clinic that's busy but can't find enough dentists may have to go higher.
Why the rate is drifting down to 35%
Running a clinic costs more than it did a few years ago. Two costs in particular have jumped.
- Marketing. Google and Meta ads now take 2% to 4% of revenue for established clinics, and 20% to 25% for new clinics.
- Staffing. Recent award increases have pushed support staff costs up by at least 3% to 5%.
See the full cost picture in running a dental practice.
How lab fees change your pay
"40% excluding lab fees" means lab costs come off your billings before your percentage is applied. A simple illustration with round numbers:
| Amount | |
|---|---|
| Your billings for the year | $400,000 |
| Less lab fees on your cases | ($40,000) |
| Billings your percentage applies to | $360,000 |
| At 40% | $144,000 |
| At 35% | $126,000 |
Those numbers are made up to show the maths. In real life, a lab-heavy treatment mix (crowns, dentures, aligners) and a five-point drop in your rate both hit your pay. Check exactly how lab fees are defined and split in your agreement, then try your own numbers in the associate pay calculator.
Contractor or employee?
Unless you're a new graduate or working in the public system, you're most likely a contractor. Most of our associate clients sign a service and facilities agreement (SFA) with the clinic: the clinic provides the rooms, equipment, staff and systems, and you provide your clinical services.
How that agreement works in practice matters for the clinic as well as you, because state revenue offices look closely at these arrangements for payroll tax. See payroll tax for dental practices.
ABN, GST and your first month
- ABN: yes, if you're contracting.
- GST: yes, in our experience associates should be registered, and we set it up with your ABN.
- Tax: no one is withholding tax from your pay, so set money aside from day one and plan for your tax bill and PAYG instalments.
- Super: as a contractor you may need to fund your own. See super for dentists.
Should an associate use a company or trust?
You can, but it really depends on your billing potential. For new graduates and part-timers, we keep it simple and recommend starting as a sole trader. Then we move you to a company or trust structure if and when the need arises.
Whatever structure you use, the personal services income rules and the ATO's 2025 guidance on professionals' structures (PCG 2025/5) still apply. We cover those in our 2026-27 tax planning guide for doctors and dentists.
What dentists can claim on tax
The ATO's three rules apply to every claim: you spent the money yourself and weren't reimbursed, it directly relates to earning your income, and you have a record to prove it.
| Usually claimable | Not claimable |
|---|---|
|
Professional indemnity insurance Professional memberships (e.g. ADA, college fees) Registration renewal fees Self-education and CPD for your current role Work-related conferences Equipment such as loupes, headlights and instruments ($300 or less claimed straight away; dearer items depreciated) Protective equipment, protective clothing and compulsory uniforms Professional journals Work-related part of your phone and internet Car trips between clinics on the same day Overnight work travel Working-from-home running costs |
Normal travel between home and your clinic Everyday clothing Anything your clinic paid or reimbursed Flu shots and required vaccinations Work added onto a personal trip |
The one we most often see missed: car trips between clinics on the same day. If you work across two or three clinics, keep a log of those trips. Have your setup reviewed so nothing else is missed.
Before you sign an associate agreement
- Read it carefully, start to finish.
- Check how your percentage is calculated, and exactly how lab fees are defined and shared.
- Check payment timing, notice periods and any restraint clauses.
- If any term concerns you, run it past a professional before signing. We're happy to talk you through it.
Frequently asked questions
What percentage do associate dentists get paid in Australia?
The industry norm is a flat 40% of billings, excluding lab fees. Across our clients we see anywhere from 25% (busy clinics that can keep it low) to 45% (busy clinics short of dentists), and 35% is fast becoming the new standard as clinic costs rise.
Are associate dentists contractors or employees?
Unless they're a new graduate or working in the public system, most associate dentists we work with are contractors. They usually sign a service and facilities agreement (SFA) with the clinic.
Does an associate dentist need an ABN and GST registration?
Yes. As a contractor you'll need an ABN, and in our experience associates should be registered for GST too. We set both up in your first month.
Should an associate dentist use a company or trust?
You can, but it depends on your billing potential. For new graduates and part-timers we keep it simple: sole trader first, then a company or trust if and when the need arises. The personal services income rules apply either way.
What can dentists claim on tax?
Common claims include indemnity insurance, registration and association fees, work-related self-education, equipment like loupes, protective equipment, journals, the work part of your phone, and car trips between clinics on the same day. You must have paid it yourself, it must relate to earning your income, and you need a record.
Want this applied to your numbers?
Book a free 30-minute consult. We'll go through where you are now and what we'd do next if we were in your shoes.
Related guides
What dentists actually earn in Australia
Income by experience, metro vs regional, specialists, and why hours and scope matter more than ownership.
Payroll tax for dental practices
How the contractor rules work, what changed in QLD and VIC, and how to review your arrangements.
Buying a dental practice
What it costs, how we check the numbers, buying as a non-dentist, and buy-in vs start-up.
WeGrow Dental Benchmarks 2026
Income, hourly KPIs, chair revenue, cost ratios and sale multiples from our dental client base.
Sources
- ATO: Doctor, specialist or other medical professionals – income and work-related deductions
- ATO tax time toolkit: doctors and medical professionals (PDF)
- WeGrow client data: ranges we see regularly across our dental clients, reviewed by Inam Asiful (7 October 2026).
General information only, not tax, financial or legal advice. Figures are ranges from our client base and public sources as at 7 October 2026; your situation will differ. Talk to us before acting on anything here.