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As the veterinary industry faces increasing levels of consolidation, it’s important to be aware of ownership of practices, as it can factor in to decisions about job applications. Some ‘independently owned’ practices are starting to promote this as an attractive option to job applicants, and new graduates are faced with a barrage of promotion from the major consolidators, who are able to offer attractive graduate training packages.

So, who are the major players?

Around 60% of veterinary practices in the U.K. are owned by six large consolidators, according to the CMA (the UK Competition and Markets Authority). The CMA has identified six large corporate groups (CVS, IVC Evidensia, Linnaeus, Medivet, Pets at Home, VetPartners) owning veterinary practices, including three that are owned by private equity firms.  After an initial review in September 2023, The CMA has reached a provisional decision to open a formal market investigation.

In the United States, about 30% of general practices and 75% to 80% of specialty practices are owned by consolidators, together accounting for at least 50% of industrywide revenue, by the reckoning of Chicago-based Brakke Consulting.

Levels of ownership concentration in Australia are lower, though by how much is unclear. According to data compiled by IBISWorld in 2023, VetPartners controls some five per cent of the Australian veterinary industry compared with Greencross, which has a 6.1 per cent share. The remaining 88.9 per cent is split among the remaining operators, many of whom are single-practice businesses. Australian consolidators have also acquired veterinary education facilities, pet crematoria, pet stores, and pathology businesses.

Some of the major Australian consolidators at the moment are:

• Vetpartners –  acquired by Swedish private equity firm EQT (BPEA Private Equity Fund VIII) in 2023. Vetpartners practices are individually branded, but also incorporate some GP groups such as Vetwest and AdelaideVet, and a growing ream of referral centres including Southpaws, Brisbane Veterinary Specialist Centre, North Shore Veterinary Specialist Centre, Sydney Veterinary Emergency & Specialists, Peninsula Vet Care, and Perth Veterinary Specialists.
• Greencross – acquired by US private equity firm TPG Capital (55%) in 2019. A 45% stake is owned by AustralianSuper and HOOP. There has been some interest in the group from Wesfarmers. GP clinics are branded Greencross, and there’s a network of Animal Emergency Centres, and also the Animal Referral Hospital group. Greencross also owns Petbarn, Animates, City Farmers and Habitat Pet Supplies.
• Apiam Animal Health Limited, including Furlife Vet  companion animal clinics – ASX listed public company. With 80 clinics, Apiam is touted to be an attractive target for a buyout.
• Vets Central – Pemba Capital Partners, Australian private equity firm (2021). Over 45 clinics according to the Pemba Capital Partners website. Pemba Capital Partners also has an interest in Queensland Veterinary Specialists, and VSA in New Zealand (Veterinary Specialists Aoteara).
• CVS – CVS Group plc – UK listed public company currently expanding their consolidation of clinics in Australia, currently standing at around 28.
• Petstock – Petspiration Group. 55% owned by Woolworths since the end of 2023
• OurVet – PetO –  Australian owned private company. In 2024 PetO has taken over the practices divested by the Petspiration Group following the Woolworths deal (41 stores and 25 co-located vet clinics, branded Best Friends, Our Vet, My Pet Warehouse and Pet City), to add to a handful of clinics in Sydney.
• Animal Emergency Australia, AES – Independent Employee Owned. Practices in 6 states.
• Small Animal Specialist Hospital, SASH – Independent Vet Owned, private equity company has a minority stake

So how about New Zealand? Vet Clubs are being corporatized and clinics are also being consolidated, although it may not be as immediately obvious.

• Vetpartners – owned around 50 clinics in NZ in 2023. Including Pet Doctors (most now de-branded). Foreign owned – acquired by Swedish private equity firm EQT (BPEA Private Equity Fund VIII) in 2023
• Vetora – Vet Club
• Vetlife Animal Health Partners – vet club/private company
• VetEnt – Veterinary Enterprises Group Limited, Petfirst – private company
• Anexa Veterinary Services – Anexa FVC – private company

The Kookaburra Vet Employment Salary Survey in 2022 highlighted some differences between corporate and non-corporate practices, one of which was the ‘happiness’ scores (243 responses).

It’s to be hoped that as levels of consolidation increase, these companies take the crisis in veterinary mental health seriously, and implement measures to improve support and working conditions for all their employees.

Author:
Wendy Nathan
Kookaburra Veterinary Employment

This information includes the views and opinions of Kookaburra Veterinary Employment and is of a general nature only. Factual information is believed to be correct at the time of writing, however, should not be relied upon and any person should confirm details with the relevant authorities and through their own research prior to acting on any of the suggestions in this article.

We’re all getting excited about our Office Christmas party – but here’s a quick reminder about the tax implications from the ATO Grinch!

If your business holds a Christmas party:

• on a working day, on your business premises, and only for your current employees, you don’t pay fringe benefits tax (FBT) for the food and drink
• off your business premises, or the party includes associates of employees (such as their partners), you don’t pay FBT if the party is a minor benefit – that is, the cost for each person is less than $300 and it would be considered unreasonable to treat it as a fringe benefit
• that includes clients, you don’t pay FBT for the costs relating to the clients.

If you give your employees a Christmas gift, you don’t pay FBT if the value of the gift is less than $300 per person and it would be considered unreasonable to treat it as a fringe benefit.

If the Christmas party is not subject to FBT, you can’t claim income tax deductions (or GST) for the cost of the party.

https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax/types-of-fringe-benefits/entertainment-related-fringe-benefits/how-to-work-out-fbt-on-entertainment

Quick Guide to FBT (Fringe Benefits Tax)

Fringe Benefits

A fringe benefit is a payment made to an employee but in a different form to salary or wages. Benefits made to volunteers or contractors are NOT fringe benefits. A fringe benefit is provided “in respect of employment”. It can also be a benefit given to an associate of the employee. So, for example if an employer pays the gym fees of an employee’s spouse, this is considered a fringe benefit provided to an associate of the employee.

Examples of fringe benefits include:

• allowing an employee to use a work car for private purposes
• car parking
• paying an employee’s gym membership
• providing entertainment by way of free tickets to concerts
• reimbursing an expense incurred by an employee, such as school fees
• giving an employee a discounted loan

Some work-related items (mainly used for work purposes) are exempt benefits. The exact exemption rules vary for small businesses:

• Portable electronic devices
• Software, protective clothing, tools of trade

‘Minor benefits’ are also exempt

• When it’s both less than $300
• And ‘unreasonable for it to be treated as a fringe benefit’

Fringe Benefits Tax – FBT

FBT is the amount of tax that would have been paid by the employee if they had paid for the benefit out of their own wages, at the top marginal tax rate including the medicare levy (47%) – eg. To buy a gym membership costing $1,100 including GST, the wages required would be $2,075: – $975 tax and $1,100 membership.

Instead of paying the employee extra salary of $2,075, the employer pays the gym membership of $1,100, claims $100 GST credits, and pays the tax required directly to the ATO as FBT. The employer can claim an income tax deduction for both the cost of the gym membership, and the cost of the FBT.
The employee then does not pay income tax on the fringe benefit.

The FBT year is from 1st April to 31st March, and a FBT return must be lodged each year.

For more information visit https://smallbusiness.taxsuperandyou.gov.au/expense-payments-fringe-benefits-tax and https://www.ato.gov.au/businesses-and-organisations/hiring-and-paying-your-workers/fringe-benefits-tax

Author:
Wendy Nathan
Kookaburra Veterinary Employment

This information includes the views and opinions of Kookaburra Veterinary Employment and is of a general nature only. Factual information is believed to be correct at the time of writing, however, should not be relied upon and any person should confirm details with the relevant authorities and through their own research prior to acting on any of the suggestions in this article.

Superannuation is money put aside and saved while you’re working, to provide an income later in life when you retire.

From 1 July 2025, the super guarantee rate rose from 11.5% to 12%. The concessional contributions cap remains stable since 30 June 2024 at $30,000. Employees who think superannuation hasn’t been paid can make a complaint to the ATO.

The Superannuation Guarantee

In Australia, Employers must pay Super (the Super Guarantee) for

• employees 18 years+
• employees under 18 years working more than 30 hours a week.
• some contractors paid primarily for labour, even if they have an ABN

Temporary residents are also eligible for superannuation.

The Super Guarantee is currently 12% of ordinary time earnings (OTE) – this includes some bonuses, allowances, some paid leave, but not generally overtime. It has increased by 0.5% each year since 2021 up to 12% from July 2025 onwards. Employers are obliged to contribute this minimum percentage but they can contribute more. Full time, part time, and casual employees are all included.

SuperStream

Up to 30 June 2026, contributions must be made on at least a quarterly basis, by the quarterly due dates. Employers must pay and report super electronically in a standard format, meet SuperStream requirements and pay into a complying super fund.

If not paid on time, the super guarantee charge may be payable. An employee’s super contribution is counted as being paid on the date the fund receives it, not the date a clearing house receives it. This means that if a quarterly payment is due on 28^th October for example, payment may need to be made up to 10 days prior.

If the accounting system used by the employer is not SuperSteam compliant, small businesses (19 or fewer employees) can use the free Small Business Superannuation Clearing House. There are also other commercial options, or use a clearing house provided by your Super Fund.

As part of the Payday Superannuation initiative, from 1 July 2026 employers will be required by law to pay their employees’ super concurrently with their salary and wages.

The ATO’s Small Business Superannuation Clearing House (SBSCH) will be closed on July 1, 2026, as part of this reform. While existing users will retain access until 30 June 2026, new registrations will not be accepted after 1 October 2025.

Contractors

Many Vets work as contractors, have an ABN (Australian Business Number) and invoice clinics for their work. However, for Superannuation purposes, they may still be considered an employee and entitled to the Super Guarantee from their employer if they are paid under a verbal or written contract that is mainly for their labour (more than half the dollar value of the contract is for their labour), perform the work personally, and are paid for hours worked, rather than to achieve a result. Their earnings amount is not relevant.

To work out whether super applies in your situation, use the following link to the relevant section of the ATO website at https://www.ato.gov.au/businesses-and-organisations/super-for-employers/work-out-if-you-have-to-pay-super/super-for-independent-contractors

Temporary Residents

Temporary Residents ARE both entitled to accumulate superannuation and also to receiving the Super Guarantee from employers. This includes Working Holiday Makers.
When Temporary Residents leave Australia, they may be entitled to claim the super paid for them back, as a DASP – Departing Australia superannuation payment. For more information visit https://www.ato.gov.au/Individuals/Super/In-detail/Temporary-residents-and-super/Super-information-for-temporary-residents-departing-Australia/

New Zealand citizens are not eligible for a DASP. However, New Zealand residents or citizens may be able to transfer any Australian superannuation they have accumulated to a KiwiSaver scheme provider or have it directly paid to themselves if eligible. This includes any unclaimed super money held by the ATO. Refer to the following link for more information Trans-Tasman Retirement Savings Transfers

Additional Contributions

You can add your own money into your super savings, and low or middle income earners may be eligible for government co-contributions.

Employees can initiate a salary sacrifice arrangement with their employer (pre-tax), or make their own personal contributions. There is a cap on Concessional contributions (which includes Super Guarantee payments from your employer), of $30,000.

Advantages of adding additional contributions to your super fund include increases to your superannuation balance. In addition, all non-concessional contributions are classified as ‘tax-free’ components within a super account. Tax-free components are received completely tax-free upon withdrawal in all circumstances, including lump sum withdrawals, pension payments and when paid as a death benefit, regardless of the age of the member.

A downside of making concessional and non-concessional contributions into super is that these funds are inaccessible until you meet a superannuation condition of release, such as retirement or reaching age 65.

Tax on Super

Concessional Contributions – 15%

Concessional contributions to your super fund are generally taxed at 15% when they are received by your super fund. These are super contributions made before tax, and include super guarantee from an employer, salary sacrifice, personal contributions claimed as an income tax deduction. The cap on concessional contributions is $30,000 from 1st July 2024 – more than this attracts extra tax.

Non-Concessional Contributions – not subject to tax

These are super contributions made after-tax eg. spouse contributions or personal contributions not claimed as an income tax deduction. The cap on non-concessional contributions is $120,000 from 1^st July 2024 – more than this may attract extra tax. Note these are not taxed when received into the super fund because the funds have already been taxed.

Keeping Track of Super using MyGov

Employees can nominate which Super fund they wish to have their contributions paid into – they should fill out a Standard choice form ( follow instructions on how to do so by clicking on the following link https://www.ato.gov.au/forms-and-instructions/superannuation-standard-choice-form ) and provide it to the employer. Employees can now create a myGov account https://my.gov.au which is a central portal to which you can link Medicare, Centrelink, Child Support, ATO (Australian Taxation Office), My Health Record & other government agencies. You need a fair amount of information in order to link all or some of these agencies to your account, so make sure you have all your paperwork handy.

Once done, you can see what Superannuation Fund accounts you have and keep track of them through the ATO link in MyGov. For more information on how to manage your superannuation using the MyGov app and/or ATO tools including locating any lost superannuation, please click on the following link. https://my.gov.au/en/services/work/currently-employed/superannuation/managing-your-super.

Stapled Super Funds

A stapled super fund is an existing super account linked, or ‘stapled’, to an individual employee so that it follows them as they change jobs. This is aimed at reducing account fees and avoiding new super accounts being opened every time an employee starts a new job. Employers should offer employees a choice of super fund and are subject to penalties if they do not meet their obligations for this. However, for employees who don’t choose a super fund (this may include contractors), or who may not be eligible to choose a super fund (for example, temporary residents or employees covered by a relevant enterprise agreement), the employer should request the stapled super fund details for an employee from the ATO using ATO Online services. This has been a requirement since 1^st November 2021. There are certain steps to make a stapled fund request. For more information visit the ATO website at https://www.ato.gov.au/businesses-and-organisations/super-for-employers/setting-up-super-for-your-business/offer-employees-a-choice-of-super-fund/stapled-super-funds-for-employers

More Information

For more information about all aspects of super for employers and employees, including how to find lost super, visit https://www.ato.gov.au/Super/

Author:
Scarlett Aston
Kookaburra Veterinary Employment

This information includes the views and opinions of Kookaburra Veterinary Employment and is of a general nature only. Factual information is believed to be correct at the time of writing, however, should not be relied upon and any person should confirm details with the relevant authorities and through their own research prior to acting on any of the suggestions in this article.