Closing or Selling a Physio Clinic: Do Not Forget Tax Registrations

The ATO updated guidance this week on cancelling business registrations. It also updated information on final lodgments, payments, and record keeping.

This is not only for failed businesses.

It can matter when a physio clinic owner sells, closes a site, retires, changes structure, or stops trading through one entity.

The tax work does not end on the last patient booking.

Why registrations matter

Your clinic may have more than one tax registration.

Common ones include:

• ABN
• GST
• PAYG withholding
• business name
• fuel tax credits, if used
• state or territory registrations

If the clinic closes or changes hands, these records need to be checked.

Leaving old registrations open can lead to letters, forms, due dates, and lodgment reminders you did not expect.

Final BAS and GST checks

If your clinic is registered for GST, there may be a final BAS or activity statement.

Before lodging it, check:

• the final sales
• unpaid invoices
• supplier bills
• equipment sold with the business
• stock or products sold
• rent adjustments
• GST on any sale contract

Do not assume the sale is simple. Some clinic sales involve goodwill, equipment, lease items, patient records, or restraint terms. Get advice before you sign.

Payroll needs a clean finish

If your clinic has staff, payroll needs special care.

Check:

• final wages
• unused leave
• PAYG withholding
• super guarantee
• Single Touch Payroll finalisation
• contractor payments
• workers compensation records

Staff may leave before the clinic closes, or they may move to a buyer. Either way, the records should be clear.

This is one area where rushed work can create problems later.

Keep records after the clinic stops

Closing the clinic does not mean you can delete the files.

Keep records for tax, payroll, GST, contracts, loans, finance, and the sale or closure.

Store them somewhere safe. Make sure you can still access old accounting software, bank statements, and payroll reports after the clinic bank account is closed.

A simple folder can save a lot of stress later.

Tell the right people

Make a short list of who needs to know.

This may include:

• the ATO
• ASIC, if a company is involved
• your accountant
• your bookkeeper
• payroll software providers
• the bank
• insurers
• the landlord
• finance companies
• staff and contractors

Do not rely on one form to fix everything. Different bodies may need different updates.

Plan before the last month

The best time to check this is before the clinic closes or settles.

Ask your accountant:

• which registrations should be cancelled
• which should stay open for now
• what final lodgments are due
• what records must be kept
• what tax may arise from selling assets or goodwill

A clinic exit is busy. There are patients, staff, buyers, landlords, and suppliers to manage.

A tax registration checklist keeps one important part under control.

Sources: ATO, “Cancelling business registrations” and “Final lodgments, payments and record keeping”.