Somewhere between their late thirties and early fifties, most doctors, lawyers and accountants reach the same fork in the road. A senior colleague mentions a buy-in. A hospital or firm offers a comfortable salaried role. Or a quiet voice suggests it’s time to open their own rooms. Any of these paths can work well, but each one changes how money flows in and out of a household. That’s why many professionals speak with an independent financial advisor in Melbourne before they sign anything. A good financial advisor for high income earners will usually start with cash flow optimisation rather than the headline income figure, because what someone keeps matters more than what they bill.
Staying employed can be a strategy, not a fallback
People often undersell employment. Salaried professionals receive the super guarantee, which rose to 12% of ordinary time earnings on 1 July 2025. They also get paid leave and carry no exposure to rent, staff costs or unpaid invoices. These settings also typically offer more predictable hours and income with less financial risk.
The trade-off is a ceiling. Salary packaging and salary sacrifice into super help, within the concessional contributions cap of $30,000 a year, but employees have fewer ways to structure their income. For someone raising young children or building an investment portfolio outside work, that predictability can be worth more than the extra upside.
What buying into a practice costs
Equity partnership brings prestige and a share of profits. The buy-in cheque is only the start, though. New partners usually contribute capital, often funded by a loan, and may take lower drawings in the early years while they pay off goodwill.
Partners in a traditional partnership pay income tax on their share of profits, fund their own super and carry unlimited liability for the partnership’s debts. That last point can catch people off guard. Accountants Daily has also reported adviser warnings that new partners often overlook how a firm’s structure affects their pay, tax, personal super contributions and insurance. This is where a financial advisor for high income earners earns their fee, by modelling the first five years rather than the first five months.
Before signing, it pays to check:
- How the firm splits profits (lockstep, merit-based or a hybrid)
- What happens on exit, death or disability, and how goodwill is valued
- Whether drawings leave enough to cover quarterly PAYG instalments
- The firm’s debt, lease commitments and work in progress
Going solo means greater freedom with a bigger to-do list
Clio’s Legal Trends Report for Solo and Small Law Firms found solo lawyers can earn more because they aren’t funding a large firm’s overheads and partner shares. Many do. Results vary widely, however.
Start-up costs add up quickly: fit-out, software, professional indemnity insurance, staff and marketing. Doctors in Victoria also need to understand payroll tax. The State Revenue Office has applied it to some medical centre service arrangements, and the rules have shifted in recent years, so specialist advice is essential. An independent financial advisor in Melbourne can work alongside an accountant to stress-test the numbers before any lease is signed.
Super is another blind spot. The federal government’s Retirement Income Review found that self-employed people, who aren’t covered by the super guarantee, tend to retire with lower balances. Of course, there is far less risk of that for high income professionals, but it’s still worth looking at and planning a strategy with superannuation consultants.
What to watch out for
- Mixing business and personal money. Separate accounts for operating costs, tax and personal pay give a clear picture of true take-home income. This simple step sits at the heart of cash flow optimisation.
- Underestimating the ramp-up. In our experience, a buffer of six to twelve months of personal expenses is a sensible starting point for new owners, though needs vary.
- Letting insurance lapse. Cover held through an employer’s super fund may not follow someone into partnership or private practice.
- Ignoring the personal services income rules. The ATO can limit the tax benefits of companies and trusts where income comes mainly from an individual’s own skills and effort.
Get expert analysis from an independent financial advisor in Melbourne to find the right practice structure
No single path suits everyone. The right choice depends on risk appetite, family plans, debt levels and how much someone enjoys running a business. Professionals who model each scenario early, ideally with an independent financial advisor in Melbourne, tend to make calmer, better decisions. Working with a financial advisor for high income earners helps bring tax, super, insurance and lending together in one plan. Throughout, disciplined cash flow optimisation keeps the household secure while the career takes its next step.
Please note: this article is general information only and doesn’t take anyone’s personal circumstances into account. Tax thresholds and state rules change, so professional advice is important before acting.
