Payroll Tax and Service Agreements – What Medical Practices Need to Know in 2026

Payroll Tax and Service Agreements – What Medical Practices Need to Know in 2026

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Payroll Tax and Service Agreements - What Medical Practices Need to Know in 2026

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3 min read

14 Oct 2026

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    Key Takeaways
  • ࠂ
    Payroll Tax rules vary by State – Exemptions, concessions, thresholds and rates differ across Australia, making it essential for practices to understand their state or territory’s requirements.
  • ࠂ
    Service Agreements matter – Current, signed Service Agreements should accurately reflect practitioner arrangements, including billing, service fees and the flow of funds.
  • ࠂ
    Review & reduce risk – Practices should review agreements, payment arrangements and operational processes to identify potential payroll tax exposure and ensure they are appropriately structured and documented.

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Payroll tax remains a significant issue for medical, dental and allied health practices across Australia.

The application and enforcement of payroll tax varies between states and territories, as do rates, thresholds, exemptions and concessions. This can make it difficult for practices to understand their obligations and assess whether payments made to practitioners may attract payroll tax.

With Revenue Offices continuing to scrutinise practitioner arrangements, practices should understand the rules that apply in their jurisdiction and ensure their contractual, financial and operational arrangements are appropriately structured and documented.

Payroll Tax Relief for Medical Practices by State and Territory

Current as at September 2026. Payroll tax rules and Revenue Office guidance are subject to change.

Australian Capital Territory (ACT)

Annual Threshold: $1.75 million
Rate: 6.75% for annual wages from $1.75 million to $20 million (variable rates for annual wages exceeding $20 million)

GP Clinics:

From 1 July 2025, medical practices that engage general practitioners, or other contractors who perform medical services that are bulk-billed or certain services under the Veteran’s Entitlements Act 1986 (Cth) or under the Workers Compensation Act 1951, are exempt from paying payroll tax on wages for those services performed.

New South Wales (NSW)

Threshold: $1.2 million
Rate: 5.45%

GP Clinics:

From 4 September 2024, medical centres can claim a rebate of payroll tax for payments made to GP Contractors if they meet the relevant proportion of general practitioner services under the “prescribed billing arrangements” which are subject to the following thresholds:

  • Metropolitan Sydney: 80% of general practitioner services; and
  • Other areas: 70% of GP services

Suburb classification can be found on the Revenue NSW website.

The prescribed billing arrangements for general practitioner services include the following:

  • Bulk billing arrangement, where a person responsible for paying for the services assigns their right to a Medicare benefit for the service; and the general practitioner accepts the Medicare benefit as full payment for the service.
  • Veterans arrangement, for general practitioner services, refers to arrangements under which the general practitioner accepts full payment for services listed under the Department of Veteran Affairs and its relevant Acts of Commonwealth; or approved by the Chief Commissioner of Revenue NSW.

Queensland

Threshold: $1.3 million
Rate: 4.75% for annual wages below $6.5 million and 6.95% for annual wages more than $6.5 million

GP Clinics:

From 1 December 2024, wages paid to contracted GPs are exempt from payroll tax.

Dental Clinics:

An amnesty was provided for payments made to contracted and registered dentists from 1 July 2018 to 30 June 2025. There are currently no exemptions or amnesties available for dental clinics in Queensland.

South Australia

Threshold: $1.5 million (with up to $600,000 deduction)
Rate: 0%-4.95% (variable for annual wages between $0 to $1.7million)

GP Clinics: From 1 July 2024, an ongoing exemption applies to wages relating to bulk-billed services only.

The bulk-billing exemption applies to GP services and does not extend to other staff, pathology or allied health services.

Dental & Specialist Clinics:

Currently, no relief or exemptions apply after 1 July 2024.

Victoria

Threshold: $1 million
Rate: 4.85%

GP Clinics:

From 1 July 2025, a payroll tax exemption applies only to wages paid or payable by a general practice medical business to contractor GPs for medical services performed that are fully-funded consultations. This exemption does not apply to dental or allied health medical centres.

Western Australia

Threshold: $1 million
Rate: 5.5%

Western Australia assesses payroll tax based on a common law employer-employee relationship rather than extended contractor provisions. Doctors who run their own true businesses are generally not counted as taxable wages.

The $1 million payroll tax threshold is subject to a diminishing threshold for employers or groups with Australian taxable wages between $1 million and $7.5 million.

Medical Clinics:

WA does not apply payroll tax to payments made to contracted GPs or allied health practitioners.

Tasmania

Threshold: $1,250,001 million
Rates: 4% for annual wages between $1,250,001 million and $2 million. 6.1% for annual wages above $2 million.

Medical Clinics:

There are no exemptions or amnesties currently available.

Tasmania has not issued public guidance on how payroll tax applies to medical centres.

Northern Territory

Threshold: $2.5 million
Rate: 5.5% for annual wages less than $100 million, 6.5% for annual wages more than $100 million.

Medical Clinics:

There are no exemptions or amnesties currently available.

The Northern Territory has not issued public guidance on how payroll tax applies to medical centres.

Increased Scrutiny - Is your Practice Audit-Ready?

While greater certainty now exists in some jurisdictions, there is no single Australian payroll tax position for medical practices.

Revenue Office audit activity is continuing, with practitioner arrangements, contractor payments and the supporting financial and operational records of practices coming under scrutiny.

Practices that cannot rely on an exemption or concession should review their practitioner arrangements and supporting documentation to identify and address potential payroll tax exposure.

One of the key documents is the Service and Facilities Agreement (SFA).

What is a Service and Facilities Agreement?

An SFA governs the relationship between a practice and an independent practitioner operating their own medical or healthcare business.

Under a typical arrangement, the practice provides the practitioner with facilities and administrative services required to operate their business, and the practitioner pays the practice a service fee in return.

An SFA should clearly document the parties' respective rights and obligations, including the services and facilities provided, practitioner independence, service fees, billing and payment arrangements, patient records and termination arrangements.

Why Service Agreements Matter for Payroll Tax

A well-drafted SFA can help:

  • Clearly establish the intended legal and commercial relationship between the practice and practitioner;
  • Document how patient fees and service fees are collected and paid;
  • Support the practice's payroll tax position;
  • Ensure contractual arrangements align with the way the practice operates;
  • Reduce the risk of disputes during and after a practitioner's engagement; and
  • Support future restructuring, sale or succession.

However, simply having an SFA is not enough.

Revenue Offices may look beyond the title of an agreement when determining whether practitioner payments are subject to payroll tax. The terms of the agreement, the flow of funds between the patient, practitioner and practice, and the way the arrangement operates in practice can all be relevant.

Don't Overlook the Flow of Funds

How patient fees are collected and how service fees are paid can be particularly important.

Practices should review their banking and payment arrangements alongside their SFAs to ensure the documented arrangement is appropriately structured and accurately reflects the intended relationship between the practice and practitioner.

Changes to payment gateways, EFTPOS arrangements, bank accounts, billing systems or administrative processes should also prompt a review of the relevant SFA and payroll tax position.

Make sure your Agreements are Signed

An unsigned or expired agreement can create significant risk.

Practices should ensure SFAs are properly executed before a practitioner commences, rather than treating signatures as an administrative task to be completed later.

Electronic signing, central agreement registers, automated reminders and clear responsibility for practitioner onboarding can help ensure agreements do not remain unsigned or expire unnoticed.

What should Medical Practices do Now?

Medical, dental and allied health practices should:

  • Understand the payroll tax rules, rulings and exemptions that apply in their state or territory;
  • Assess whether practitioner payments may be subject to payroll tax;
  • Ensure every practitioner has a current and signed SFA;
  • Review the flow of funds and banking arrangements between patients, practitioners and the practice;
  • Check that SFAs accurately document the intended practitioner arrangements;
  • Review agreements when billing processes, ownership, structure or operational arrangements change; and
  • Seek legal and accounting advice where there is uncertainty or potential exposure.

How Hillhouse can help

Payroll tax and practitioner arrangements are complex, and the position continues to evolve.

Hillhouse Legal Partners works closely with medical, dental and allied health practices to provide practical, commercially focused advice on Service and Facilities Agreements, practitioner arrangements and payroll tax risk.

If your practice does not have current SFAs in place, your agreements have not been reviewed recently, or you are concerned about your payroll tax position, now is the time to act.

Our experienced Health & Medical legal team can help you identify potential risks, strengthen your agreements and implement practical solutions that work for your practice.

Contact Craig Hong, or Zach Sudiro on (07) 3220 1144 or email@hillhouse.com.au.

AI in Healthcare: Managing Privacy, Legal & Compliance Risks

AI in Healthcare: Managing Privacy, Legal & Compliance Risks

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AI in Healthcare: Managing Privacy, Legal & Compliance Risks

Author: Craig Hong

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3 min read

20 Aug 2026

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    Key Takeaways
  • AI can improve efficiency and patient care, but healthcare professionals remain responsible for protecting patient information and meeting their legal and professional obligations.
  • Practices should understand how AI providers collect, store and use patient data, and ensure their privacy policies and patient consent processes reflect their use of AI.
  • AI should support, not replace, professional judgement, with appropriate governance, cybersecurity safeguards and oversight in place.

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"Artificial Intelligence is transforming healthcare, offering significant opportunities to improve efficiency and patient care. However, innovation must be supported by strong governance, robust privacy practices and sound clinical judgement. Understanding your legal obligations before implementing AI is essential to protecting your patients, your practice and your reputation."

Craig Hong - Director, Hillhouse Legal Partners

Artificial Intelligence (AI) is rapidly changing the way healthcare is delivered. From AI-powered clinical scribes and practice administration to diagnostic support and patient communications, AI is helping healthcare professionals improve efficiency, reduce administrative burden and enhance patient care.

However, these technologies also introduce important legal, privacy and compliance obligations. Healthcare professionals, practice owners and healthcare businesses remain responsible for protecting patient information, obtaining appropriate consent, complying with privacy legislation and ensuring AI supports, not replaces, professional judgement.

This fact sheet outlines the key legal considerations every healthcare professional should understand before implementing or expanding the use of AI.

How AI Is Being Used in Healthcare

AI is increasingly being integrated into both clinical and administrative functions, including:

Practice Administration

  • AI clinical scribes and consultation transcription
  • Appointment scheduling and workflow management
  • Billing and administrative support
  • Patient communications

Clinical Support

  • Diagnostic assistance
  • Clinical decision support
  • Identification of potential medication interactions
  • Medical imaging analysis

Research & Innovation

  • Clinical research
  • Drug discovery and development
  • Analysis of large health datasets

While AI can significantly improve efficiency, it also creates new legal, privacy and governance responsibilities for healthcare professionals and healthcare businesses.

Key Legal Considerations Before Introducing AI

Before implementing any AI platform, healthcare professionals and practices should carefully assess how the technology collects, stores and uses patient information.

Where Is Your Patient Data Stored?

Many AI providers process or store information using overseas servers. Before adopting an AI platform, healthcare professionals and practices should understand:

  • where patient information is stored;
  • whether information is transferred outside Australia;
  • whether overseas privacy protections are comparable to Australian standards; and
  • whether additional patient consent is required.

Does the AI Provider Use Your Data?

One of the most important questions to ask any AI supplier is whether uploaded information is used to train or improve its AI model.

Before engaging an AI provider, healthcare professionals and practices should understand:

  • whether patient information is retained;
  • whether information is anonymised;
  • whether data is used for ongoing AI development;
  • whether this can be contractually prevented; and
  • how information is permanently deleted when no longer required.

Healthcare professionals and practices should exercise particular caution when using free or consumer AI platforms, as patient information may be retained or used to improve the provider's AI model.

Review Your AI Supplier Agreement

Before purchasing or subscribing to an AI platform, carefully review the provider's terms and conditions. Key contractual issues include:

  • ownership of uploaded information;
  • confidentiality obligations;
  • cybersecurity standards;
  • data retention periods;
  • liability if the system fails;
  • termination rights; and
  • deletion of patient information when the agreement ends.

Understanding these contractual arrangements before implementation can help minimise legal, privacy and operational risks.

Privacy & Patient Consent

Patient health information is among the most sensitive forms of personal information protected under the Privacy Act.

If AI is used within your practice, patients should be informed: that AI is being used;

  • what information is collected;
  • how that information is used;
  • where it is stored;
  • whether information is disclosed overseas; and
  • whether any automated decision-making occurs.

Privacy policies and patient consent documentation should accurately reflect the use of AI within the practice.

Where appropriate, patients should also have the opportunity to ask questions and opt out of AI-assisted processes.

From 10 December 2026, organisations subject to the Privacy Act will also be required to disclose the use of automated decision-making processes involving personal information in their privacy policies.

AI Does Not Replace Professional Responsibility

AI is designed to support healthcare professionals, not replace them. Healthcare professionals remain responsible for:

  • exercising independent clinical judgement;
  • reviewing AI-generated information;
  • ensuring clinical decisions remain appropriate;
  • maintaining accurate patient records; and
  • meeting all professional and ethical obligations.

AI is a tool to support clinical decision-making, not replace it. Healthcare professionals remain legally responsible for patient care.

Medicare & Billing Considerations

Healthcare professionals and practice owners should also consider the Medicare implications of AI-assisted healthcare.

While AI may assist with documentation or clinical support, healthcare professionals remain responsible for ensuring Medicare billing requirements are satisfied.

Healthcare professionals should not assume services generated primarily through AI will qualify for Medicare benefits without appropriate clinical involvement.

Cybersecurity & AI

AI increases cybersecurity risks, making it essential that healthcare professionals and practices ensure AI providers meet appropriate security standards and patient information remains protected.

This includes:

  • multi-factor authentication;
  • secure user access controls;
  • encryption of patient information;
  • regular software updates;
  • incident response planning; and
  • ongoing staff training.

Healthcare continues to be one of Australia's most targeted industries for cyber incidents, making robust cybersecurity practices essential.

AI Governance Is Essential

As AI becomes more widely used across healthcare, practices should establish clear governance around its implementation, while healthcare professionals should understand their professional responsibilities when using AI to support patient care.

This may include:

  • an approved AI usage policy;
  • staff education and training;
  • documented approval processes for new AI tools;
  • regular review of AI outputs;
  • periodic supplier reviews; and
  • ongoing monitoring of legislative and regulatory developments.

Good governance helps ensure AI is used safely, ethically and in compliance with legal and regulatory obligations.

What Healthcare Professionals Should Do Now

To minimise risk and support compliance, we recommend:

  • understanding how AI is currently being used within your practice;
  • reviewing AI supplier agreements and licence terms;
  • confirming where patient information is stored and processed;
  • reviewing privacy policies and patient consent documentation;
  • ensuring appropriate cybersecurity safeguards are in place;
  • developing or reviewing internal AI governance policies;
  • providing staff education and training on the appropriate use of AI;
  • considering Medicare billing implications; and
  • obtaining legal advice before implementing new AI technologies.

How Hillhouse Legal Partners Can Help

Hillhouse Legal Partners has been supporting Australia's health and medical profession for over 30 years.

  • Our Corporate & Commercial team regularly advises healthcare professionals, practice owners and healthcare businesses on:
  • AI governance and implementation;
  • Privacy Act compliance;
  • patient consent documentation;
  • AI supplier and software agreements;
  • technology procurement;
  • cybersecurity and data governance;
  • medical practice risk management; and
  • regulatory compliance.

We understand the commercial realities of modern healthcare and provide practical, commercially focused advice to help our clients embrace innovation while managing legal and regulatory risk.

Need Advice on AI in Your Practice?

Artificial Intelligence is evolving rapidly, but your legal obligations remain.

Whether you are introducing AI for the first time or reviewing
existing systems, our experienced team can help you navigate
the legal, privacy and regulatory considerations with confidence.

This fact sheet provides general information only and should not be relied upon as legal advice. Specific legal advice should be obtained based on your individual circumstances.

Queensland Trusts: The 2025 Reform Explained- What It Means For You

Queensland Trusts: The 2025 Reform Explained- What It Means For You

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Queensland Trusts: The 2025 Reform Explained - What It Means for You

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3 min read

12 May 2026

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    Key Takeaways
  • ࠂ
    The Trusts Act 2025 (Qld) introduces a modern, clearer framework for how trusts operate in Queensland
  • ࠂ
    Trustees now have broader powers, but those powers come with more clearly defined duties and accountability
  • ࠂ
    Beneficiaries have stronger rights, including better access to information and improved financial protections
  • ࠂ
    Now is the time to review your trust deed and governance processes to ensure they align with the new regime

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A long-awaited reset for trust law in Queensland

With the introduction of the Trusts Act 2025 (Qld) (the Act), the State has amended a 50-year old legislation that better reflects how trusts are used today.

While the core concept of a trust remains unchanged, the way trusts are administered, documented and challenged has evolved. The new Act is designed to simplify interpretation, improve transparency, and provide clearer guidance for trustees and beneficiaries alike.

A stronger statutory framework

The new Act now intends to operate despite inconsistent wording in a trust deed, except where the legislation itself permits otherwise. In practical terms, this means the trust deeds now need to be checked against the Act rather than treated as automatically prevailing over it.

Broader powers and clearer duties of trustees

The new Act now expands authority given to trustees. Trustees are now equipped with powers similar to those of an absolute owner of the trust assets, unless the trust deed says otherwise. This is intended to make day-to-day administration more workable and less dependent on long lists of specific powers in the trust deed.

This increased flexibility is particularly relevant for investment and decision-making. Trustees can now delegate certain functions, including investment responsibilities, provided strict requirements are met around documentation, time limits and oversight.

However, this is not a relaxation of responsibility. Quite the opposite.

The Act introduces a clear statutory framework for trustee duties which cannot be contracted out, requiring trustees to:

  • Act honestly and in good faith
  • Exercise appropriate care, skill and diligence
  • Prioritise the interests of beneficiaries
  • Maintain proper records and provide access when requested.

For professional trustees or those with specialist expertise, the expectations are even higher. This reflects a broader theme of the reforms: greater power paired with greater accountability.

 Clearer rules around who can act as trustee

The new legislation also tightens the rules around trustee eligibility and succession.

Under the new Act, a person can generally be a trustee unless they fall into a specific ineligible category. The Act now expressly prevents the following from being appointed as a trustee:

  • A child (under 18).
  • An individual who is insolvent under administration (e.g. a person subject to a bankruptcy order).
  • A corporation that is a “Chapter 5 body corporate” (a company in administration, being wound‑up, or otherwise under external administration).

This means trust deeds no longer need to rely on specific clauses in the trust deeds to exclude minor or insolvent entities.

At the same time, the process for appointing and replacing trustees has been made more practical, particularly where incapacity becomes an issue because the Act builds in statutory fallbacks instead of always requiring a court order.

Trustees can now be appointed by the appointor, by any other mechanism in the deed, or by statutory powers if no one else acts within a reasonable time, and the Act also clarifies who may remove a trustee (e.g., appointor or continuing trustees) where the trustee is unfit, incapable, or unable to act, reducing the need for ad‑hoc court applications.

A particularly useful change arises when a sole trustee loses capacity. Previously, if the deed did not provide for replacement, a court order was often required just to swap in a new trustee. Under the new Act, the attorney or administrator with authority over the last continuing trustee’s financial matters can now appoint a new trustee (including themselves), without needing to go to court first, so long as no other mechanism in the trust is available.

This is a welcome change for many families and business structures, where delays or uncertainty around trustee succession can create unnecessary risk.

Stronger rights and protections for beneficiaries

From a beneficiary perspective, the reforms introduce greater transparency and more meaningful protections.

Beneficiaries now have clearer rights to access trust information as Trustees are required to maintain accurate records and make them available for inspection and copying upon request.  Where necessary, the beneficiary may ask the court to order disclosure.

There is also increased flexibility when it comes to financial support. The statutory allowance for applying capital toward a beneficiary’s maintenance, education, or advancement has increased substantially from the former $2,000 figure. The new threshold is $100,000 or half of the beneficiary’s presumptive entitlement, whichever is greater, which may reduce the need for court applications in many ordinary cases.

Importantly, where distribution issues arise, beneficiaries may now be able to take action directly against recipients of incorrectly distributed assets, rather than navigating more complex recovery pathways.

A more accessible approach to dispute resolution

By explicitly including the District Court into the statutory framework to hear trust-related matters below the $750,000 monetary threshold, the Act aims to make resolving trust disputes more efficient and accessible as not every trust-related application needs to be heard at the Supreme Court.

Furthermore, with expanded jurisdiction, the courts are better equipped to deal with trust-related issues, including appointing or removing trustees and reviewing trustee conduct. This should help reduce time and cost barriers that have historically discouraged parties from seeking resolution.

What you should do in practice

In many cases, these statutory changes will not require a complete overhaul of existing trust arrangements. However, they do create a new baseline for how trusts should be managed. We encourage you to consider taking the following actions now, depending on your capacity or role.

If you are a trustee:

  • Review the trust deed to identify provisions that may no longer operate as expected under the new Act, especially provisions dealing with powers, delegation, records, indemnities, and beneficiary access to information
  • Check and ensure all trustees meet the eligibility requirements under the Act
  • Check whether trust accounts, minutes, and supporting records are complete and kept separately for each trust
  • Review any trustee remuneration, commissions, or related-party payment arrangements to ensure they can be justified if challenged
  • Confirm that there is a practical process for replacing the trustee if a current trustee retires, dies, loses capacity, or becomes insolvent

If you are a family or business owner using a trust:

  • Review any family trust, unit trust, or trading trust used in your business structure to make sure it still achieves the intended commercial and succession outcomes under the new legislation
  • Consider whether the broader trustee powers affect long-term control, succession planning, or asset protection arrangements
  • Obtain legal and tax advice before changing a trust deed, because amendments may have consequences including tax, duty, and estate-planning implications

If you are a beneficiary:

  • Familiarise yourself with your rights obtain trust accounts, records, or explanations from the trustee
  • Seek prompt legal advice if you suspect trust property has been transferred, distributed, or dealt with in a way that may not comply with the trust

The bottom line

The Trusts Act 2025 (Qld) represents a meaningful shift towards clarity, accountability and modern practice.

For trustees, it brings greater flexibility, but also a higher standard of conduct. For beneficiaries, it delivers improved visibility and protection.

As with most legislative change, the opportunity lies in being proactive. A timely review now can help ensure your trust structure continues to operate as intended, without unnecessary risk.

Next steps

If you would like support reviewing your trust deed or understanding how these changes apply to your circumstances, our Wills & Estates team is here to help.

Wills and Estate Planning Guide

Wills and Estate Planning Guide

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Wills and Estate Planning Guide

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3 min read

8 May 2026

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    Key Takeaways
  • ࠂ
    A complete estate plan should include a valid Will, Enduring Power of Attorney, Advance Health Directive, and updated superannuation nominations to ensure your assets, healthcare, and financial decisions are managed according to your wishes if you lose capacity or pass away.
  • ࠂ
    Estate planning is especially important for business owners, company directors, trustees, and SMSF members, as proper succession planning helps avoid operational disruption, disputes, and uncertainty for those left behind.
  • ࠂ
    Without an estate plan, your estate and personal affairs may be controlled by default legal rules or court-appointed decision-makers, potentially leading to unintended outcomes, family disputes, delays, and increased legal costs.

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Why Estate Planning Matters

When it comes to securing your legacy, caring for your loved ones, and protecting your hard-earned assets, estate planning is essential. It’s not just about what happens after you are gone – it’s about ensuring you remain in control of your personal, financial, and medical decisions if you lose the ability to make them yourself. Whether your circumstances are straightforward or complex, having a clear and legally sound estate plan can make a world of difference for you and your loved ones.

About This Guide
This guide has been created by the Hillhouse team to help you plan with clarity and confidence. Whether you’re creating your first estate plan or updating an existing one, this guide outlines why estate planning matters, what’s involved (including Wills and trusts, Enduring Powers of Attorney, Advance Health Directives, and Superannuation), and what can happen if no plan is in place. It also provides a helpful checklist and key questions to consider before meeting with one of our estate planning experts, so you can make informed decisions and get the most out of your time with us. Above all, this guide is here to help you protect what matters most - your loved ones, your wishes, and your legacy.

A properly structured estate plan can:
- Safeguard your assets for your chosen beneficiaries
- Appoint trusted individuals to manage your personal, medical, and financial affairs if you lose capacity
- Minimise legal disputes, delays, and unnecessary costs for your family
- Provide clarity and reduce emotional stress for those you leave behind.

Without an estate plan, crucial decisions may be left in the hands of the courts – leading to unintended outcomes and complex legal battles. With expert legal guidance, you can ensure your estate is handled according to your wishes.

What Makes Up an Estate Plan?

A comprehensive estate plan is tailored to your individual circumstances, family dynamics, financial situation, and long-term
goals. As a starting point, several key documents and considerations form the foundation of any effective estate plan:

1. Your Will
A Will is the cornerstone of any estate plan. It’s a legal document that outlines your instructions for how your assets and responsibilities should be handled after your death.

Your Will allows you to:
- Nominate beneficiaries – Specify who should receive your property, savings, heirlooms, and other belongings
- Appoint an Executor – Choose someone you trust to carry out your wishes and manage your estate’s administration
- Nominate Guardians – Appoint a trusted person to care for your children and/or pets
- Establish Testamentary Trusts – Protect assets for young or vulnerable beneficiaries by setting up testamentary trusts managed by a Trustee that you nominate.

When Should You Make a Will?
You should prepare a Will while you have full testamentary capacity. If you lose mental capacity – due to illness, injury, or age – you cannot legally create or amend a Will. That’s why planning early is critical. Even if you already have a Will, significant life changes – such as marriage, divorce, birth of a child, or major financial changes – may require updates to reflect your current wishes.

2. Enduring Power of Attorney (EPOA)
An Enduring Power of Attorney allows you to legally appoint someone to make decisions on your behalf if you become unable to do so.

It covers:
- Financial decisions – Managing bank accounts, paying bills, and selling property
- Personal and health decisions – Decisions about your medical treatments, living arrangements, support services, and overall wellbeing.

This document must be completed while you are still mentally capable. It provides peace of mind that someone you trust will be able to step in if something unexpected happens.

3. Advance Health Directive (AHD)
An Advance Health Directive supplements your EPOA and serves as your voice when you can no longer speak for yourself. It allows you to document your medical preferences in advance, ensuring your wishes are known and respected.

It may include:
- Instructions about life-sustaining treatments
- Preferences around palliative care
- Consent or refusal for certain procedures.

This reduces the emotional burden on loved ones and helps medical professionals act in line with your values and preferences.

4. Superannuation and Binding Nominations
Many people are surprised to learn that their superannuation is not automatically covered by a Will. Superannuation funds are governed by separate rules, and unless you have made a Binding Death Benefit Nomination (BDBN), the fund’s trustee has discretion over how your super is distributed.

A BDBN allows you to:
- Direct who will receive your superannuation and any attached life insurance
- Make your wishes legally binding on the superannuation trustee
- Reduce the risk of family disputes or delays in distribution.

Depending on your super fund, your BDBN may have an expiry date. It’s important to regularly review and update your nomination to ensure it remains valid and enforceable and reflects your current circumstances.

Special Considerations for Business Owners and Trustees
Estate planning is even more critical when you have responsibilities beyond your personal life. If you’re involved in a business or act in a fiduciary role, your plan should include who will step into those roles if you are no longer able to do so.

You should specifically address succession planning if you are:
- A director of a company (particularly a private company)
- A trustee of a discretionary or family trust
- A trustee or member of a self-managed superannuation
fund (SMSF).

Failing to plan for these roles can disrupt business operations and lead to confusion or disputes. Proper legal structuring and documentation ensures a smooth transition and protect all involved parties.

What Happens Without an Estate Plan?
If you die without a valid Will – referred to as dying intestate – your estate will be distributed according to a fixed legal formula, which varies between states. This may not reflect your true wishes or the needs of your loved ones.

Unintended outcomes that commonly arises as a result of dying intestate include:
- Assets going to unintended beneficiaries
- Children or dependents receiving insufficient support
- Family disputes over entitlements
- Delays and increased legal costs.

Similarly, without an EPOA or AHD in place, decisions about your health and finances may fall to a court appointed guardian or administrator – someone you might not have chosen yourself.

How to Get Started

Estate planning doesn’t have to be overwhelming. The most important step is simply to start. Here’s a checklist to guide your first conversations with your legal adviser:

Estate Planning Checklist:

  • Draft or update your Will
  • Appoint an Executor and (if applicable) Guardians for your children
  • Create an Enduring Power of Attorney
  • Complete an Advance Health Directive
  • Review your superannuation and make a Binding Death Benefit Nomination
  • Consider trusts for children or vulnerable beneficiaries
  • Identify business succession and trustee responsibilities
  • Discuss your plan with your family to avoid surprises
  • Review your plan regularly, especially after major life events.

Each step helps ensures that you – not someone else – remain in control of your affairs.

Estate Administration: The Process Explained

Estate administration is the process of managing a person’s estate and affairs after they have passed away. If a valid Will exists, the named Executor in the Will carries out this responsibility. If the deceased person did not have a Will, the next of kin will need to apply to the court to be given authority to administer the deceased person’s estate.

Key Steps Include:
1. Notifying Beneficiaries – Locate and inform those named in the Will
2. Identifying Assets and Liabilities – Including property, bank accounts, superannuation, debts, and taxes obligations
3. Applying for Probate or Letters of Administration (if required) – This is the formal legal authority needed to manage the estate
- Probate – If there’s a Will
- Letters of Administration – If there’s no Will or no valid Executor
4. Consolidating or selling assets and paying off debts
5. Lodging final tax returns
6. Creating Testamentary Trusts (if relevant)
7. Distributing the estate – According to the Will or laws of intestacy if no Will exists.

Tip for Executors: Seek legal advice to ensure full compliance with the law and avoid potential personal liability.

Secure Your Legacy Today
A well-considered estate plan is one of the most meaningful gifts you can give your loved ones. It ensures your voice is heard, your intentions are respected, and your legacy lives on in the way you choose.

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Fact Sheet: Joint Tenants vs Tenants in Common

Fact Sheet: Joint Tenants vs Tenants in Common

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Joint Tenants vs Tenants in Common

Author: Bec Bradfield

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3 min read

6 May 2026

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    Key Takeaways
  • ࠂ
    Choosing between joint tenants and tenants in common determines how control, inheritance, and financial risk are shared, making it a critical decision that should align with your relationship, goals, and estate planning strategy.
  • ࠂ
    Ownership structures can be changed later, but doing so typically involves legal processes, costs, and agreement between owners, so it’s best to get it right from the start with professional advice.
  • ࠂ
    The choice between joint tenants and tenants in common affects survivorship rights, estate planning, and how ownership reflects financial contributions, so it must align with your personal and financial intentions.
  • ࠂ
    Ownership structure alone may not capture the full financial arrangement and can carry tax implications, so proper documentation and professional legal and financial advice are essential.

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When purchasing a property with another person, one of the most important decisions you will make is how you own the property. Understanding how property ownership impacts control, succession and risk is critical.

The two most common ownership structures are Joint Tenants and Tenants in Common. While both give each owner legal rights to the property, they operate very differently, particularly when it comes to estate planning, asset protection and what happens if one owner passes away.

Choosing the right structure depends on your personal circumstances, including your relationship with the co-owner, financial contributions, and long-term intentions for the property.

Why Does Your Ownership Structure Matter?

Your choice of ownership will impact:

  • Who controls the property during your lifetime
  • What happens to your share if you pass away
  • How your estate plan operates
  • Asset protection and risk exposure
  • Potential tax outcomes, including Capital Gains Tax (CGT) implications

Whether you choose to hold a property as joint tenants or tenants in common depends on your intentions, such as who you intend to inherit your share if you pass away and whether the property will be your home or an investment. Addressing these considerations helps ensure your ownership structure aligns with your broader strategy. We recommend seeking legal and financial advice to ensure it meets your intentions prior to signing a contract.

Changing Your Ownership Structure

Property ownership isn’t fixed. Owners can change from joint tenancy to tenancy in common or vice versa.

Making this change often requires:

  • Formal legal documentation
  • Agreement from all co-owners (depending on the scenario)
  • Payment of the applicable registration fees and stamp duty (depending on the scenario)
  • Lodging the updated ownership with the relevant land titles registry These changes are often prompted by events such as marriage, separation, financial planning, or other changes in personal circumstances.
Joint Tenants vs Tenants in Common Diagram
Joint Tenants vs Tenants in Common Table

Important Considerations

  • Right of Survivorship (Joint Tenants) - If one owner passes away, their interest automatically transfers to the surviving owner(s), following notification to the relevant land titles registry, regardless of any Will.
  • Estate Planning (if Tenants in Common) - Your share can be distributed according to your estate plan, making this structure more suitable where succession planning is important.
  • Unequal Contributions - Where parties contribute different amounts, a tenants in common structure may better reflect financial reality.
  • Asset Protection and Documentation - Ownership on title may not reflect actual financial contributions. In some cases, additional agreements (such as loan arrangements) may be required to properly document intentions.
  • Tax Implications - There may be CGT implications depending on the ownership structure. You should seek accounting or financial advice. Contact our Property team to ensure your ownership structure is simply strategic and fit for purpose.

How Hillhouse Legal Partners Can Help

At Hillhouse Legal Partners, we provide clear, practical legal advice to ensure your property ownership structure aligns with your legal, financial and personal objectives.

We regularly assist clients with:

  • Structuring property ownership arrangements
  • Reviewing and advising on co-ownership risks
  • Aligning ownership with estate planning strategies
  • Preparing supporting legal agreements where required

Need Advice Before You Purchase?

Before deciding on an ownership structure, it’s important to seek guidance from a legal professional who can assess your individual situation and draft the necessary documents to ensure the co-ownership agreement is clear, comprehensive, and legally binding. Choosing the right structure from the outset is critical, as selecting the wrong ownership arrangement can have long-term consequences.

The information on this fact sheet is general guidance only and is not legal advice. You should seek professional advice tailored to your circumstances.

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