
Quick answer
Most Australian GPs work as self-employed contractors paid a percentage of the billings they generate, not a salary. Negotiate your billing percentage, any guaranteed minimum income for the settling-in period, patient flow, nursing and admin support, rostering, and relocation or retention incentives. Get every figure and the Medicare and DPA arrangement confirmed in writing before signing.
The right mindset
It is the contract, not the offer, that sets the terms of your working life. Many GPs, relieved to have a job secured and anxious not to seem difficult, sign the first version put in front of them; that often turns out fine, but it leaves value on the table and occasionally stores up problems. A contract is a normal negotiation between professionals, not a favour you are being granted, and reasonable practices anticipate some discussion. This guide follows from the guide to what a good job looks like and sits within the complete relocation guide.
What is usually negotiable
More is often open to discussion than a nervous first-time candidate assumes. Depending on the practice and the demand for GPs in the area, the billing percentage, a minimum income arrangement while your patient list builds, the hours and sessions, on-call commitments, leave, relocation support and the notice period can all be points you raise. Some terms are firmer than others, and a role in a high-demand or rural area may offer more room than a sought-after city practice.
Your position is often stronger than nerves suggest. Across much of Australia, and especially in the areas where overseas GPs can most readily work, practices are short of doctors, which gives a well-qualified GP real standing. A practice that has invested time in recruiting you would rather reach a fair agreement than lose you over something reasonable, so approach the conversation as an equal and focus on the few terms that matter most.
The income terms
The income terms deserve the closest reading. Start with the billing percentage: exactly how it is calculated, when you are paid, and what the practice provides in return, since the split reflects it covering rooms, staff and systems. To judge whether the numbers are fair, model realistic scenarios using the earnings guide and salary calculator rather than reacting to the headline percentage. If the role is a contractor arrangement, the tax, superannuation and state payroll implications belong in the income picture too, covered in the guide to being a contractor or an employee.
Pay particular attention to any minimum income arrangement, a base or retainer that supports you through the first few months when a new GP's earnings are lowest, before patients have found you. It is reasonable to ask about even if it is not offered upfront. Confirm how long it lasts, how it converts to full percentage billing, and what happens if your list builds faster or slower than expected.
Hours, leave and support
Money is not the whole of a contract. The hours and sessions, and any on-call, shape your daily life, so make sure the written terms match what you discussed. Check the leave arrangements, which differ between contractor and employee roles, and how time off works in practice, not just on paper.
For a relocating GP, relocation support is worth raising specifically. Some practices assist with the costs of moving, and it is reasonable to ask, particularly given the real cost of relocating. Also confirm how the practice handles the foundations that should be in place from day one, your provider number, indemnity and CPD support, so nothing falls to you by default that you assumed the practice would handle.
Restraint and notice clauses
Two clauses affect your freedom, not just your pay. A restraint clause, or restrictive covenant, limits your ability to work nearby or for a competing practice for a period after you leave. These vary widely in reach and enforceability, and for a relocating GP putting down roots in a particular town, a clause that would stop you working locally if the job did not work out is not trivial. An unreasonably broad restraint may not hold up, but you do not want to be testing that in practice, so have any restraint reviewed and ask whether it is worth narrowing.
The notice period is the other: how much notice each side must give to end the arrangement. A term that is comfortable for the practice may leave you stuck if you need to move on, so make sure it cuts both ways fairly. Neither clause is necessarily unreasonable, but both have real consequences and both are easy to overlook in the relief of an offer.
Getting proper advice
The single most important step is to have your contract reviewed by someone qualified. An Australian lawyer familiar with medical contracts can spot issues you would not, from an overreaching restraint to an ambiguous income term, and an accountant can advise on the tax and superannuation implications, which matter most for contractor arrangements given the scrutiny they have attracted around state payroll obligations. A professional review is a modest cost against a contract that governs your income and freedom for years.
Time it sensibly: ask for the full written contract early enough that there is room to have it looked over before you are expected to sign, rather than being handed it at the last minute with pressure to return it quickly. A reasonable practice will give you the time; reluctance to do so is itself worth noting. The relocation checklist helps you sequence the review among the other steps.
How to negotiate well
Negotiating well is mostly a matter of manner. Be professional, specific and courteous: explain clearly what you are asking for and why, and concentrate on the two or three things that matter most rather than contesting every line. A short, courteous message setting out those points, rather than only raising them in conversation, gives the practice time to consider them and creates a record of what was agreed.
Stay collaborative rather than combative; the aim is a fair agreement, not a victory. Negotiate from information: knowing the market, ideally with the help of a good recruiter, lets you ask for adjustments that are reasonable rather than fanciful. If a request is declined, ask why and weigh the answer, since a firm no sometimes reflects a genuine constraint. Done this way, negotiation sets a constructive tone for your first 90 days.
A contract checklist
Before you sign, work through the essentials, treating anything you do not understand as a question to resolve rather than a detail to skip.
- Read every clause and understood it, or asked until you do.
- Confirmed the income terms match what was discussed.
- Checked hours, on-call, leave and relocation support.
- Understood any restraint and the notice period.
- Confirmed contractor or employee status and its implications.
- Had the contract reviewed by an Australian lawyer.
- Taken tax advice from an accountant.
- Got everything agreed in writing, not just verbally.
Getting everything in writing matters above all: a friendly verbal assurance, however sincerely meant, is not a term of the contract, so anything that matters to you belongs in the document you actually sign.
In summary
Read the income terms, any restraint clause and your contractor or employee status especially closely, then have the whole contract reviewed by an Australian lawyer and an accountant before you sign. Focus your negotiation on the few terms that matter most, and get every agreed point in writing.
Sources
These are the primary sources behind this guide. Read them directly and confirm anything time-sensitive on the day.
| Topic | Official source |
|---|---|
| Employment rights and conditions | Fair Work Ombudsman |
| Tax and superannuation | ATO |
| Contractor vs employee (tax) | ATO |
| Medicare Benefits Schedule | MBS Online |
| Medicare provider numbers | Services Australia |
| Registration and standards | Medical Board of Australia |
| Professional support (AMA) | AMA |
| Practice standards (RACGP) | RACGP |
| Rural practice (ACRRM) | ACRRM |
| Medical indemnity | Dept of Health, Disability and Ageing |
Frequently asked questions
Are Australian GPs salaried or self-employed?
What billing percentage is typical?
Should I ask for a guaranteed income period?
What beyond pay should I negotiate?
Can I negotiate before I have registration or a visa?
What if the practice will not move on the billing percentage?
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