ATO 2026 Priorities: Clean Records for Physio Clinics

Accountants Daily reported this week that the ATO has set out priorities for 2026 to 2027.

The report said the ATO is focused on simplifying tax, closing the tax gap, and getting ready for regulatory changes.

For physio clinic owners, this is a good reminder.

Good records are not just for tax time. They protect the clinic all year.

What the tax gap means in plain English

The tax gap is the gap between tax that should be paid and tax that is paid.

Most clinic owners are not trying to do the wrong thing. But mistakes still happen.

Common problems include:

• GST coded the wrong way
• personal costs paid from the clinic account
• wages not matched to payroll
• super payments recorded late
• equipment claims with missing invoices
• contractor payments with poor records
• loans coded as normal expenses

These errors can make the clinic tax position wrong.

Keep proof, not just numbers

Your accounting file may show a payment.

That is not always enough.

You also need proof of what the payment was for. That may be an invoice, contract, receipt, loan statement, lease, or payroll report.

For a physio clinic, this matters for things like treatment tables, exercise gear, laptops, software, rent, motor vehicle costs, and staff training.

If the proof is missing, the claim can be harder to support.

Check payroll records often

Payroll is one of the easiest places to make mistakes.

A clinic may have full-time physios, part-time admin staff, casual staff, and contractors. Some people may change roles during the year.

Check that your records show:

• who is an employee
• who is a contractor
• hours worked
• pay rates
• PAYG withholding
• super paid
• leave balances
• any changes to employment terms

Do not leave this until the end of the year.

Make BAS less stressful

A clean BAS starts with clean weekly records.

Each month, check:

• uncoded bank transactions
• GST on income
• GST on expenses
• wages and super
• loan payments
• owner drawings
• large equipment purchases

This is simple work. But it stops a messy BAS from becoming a tax time problem.

Get ready for change

The Accountants Daily report said the ATO is also preparing for regulatory changes.

Clinic owners do not need to read every tax update themselves. But they do need a system that can handle change.

That means clean payroll, clean bank feeds, saved invoices, and regular contact with your accountant.

A messy file makes every change harder.

What to do this week

Pick one area and clean it up.

Start with payroll, BAS, or equipment invoices. Fix the missing records now, while the year is still fresh.

The ATO’s priorities may sound broad. The action for a clinic owner is practical. Keep records that are clear enough to explain, check, and defend.

Source: Accountants Daily, “ATO outlines priorities for 2026-27 in latest corporate plan”.