The Health Professionals and Support Services Award 2020
The Health Professionals and Support Services Award 2020 (HPSS Award) covers most dental practice support and clinical staff. The Award sets minimum weekly pay rates, penalty rates for evening and weekend work, allowances, and leave entitlements. These rates change every 1 July following the National Minimum Wage Order. Always verify current rates using the Fair Work Pay Calculator rather than relying on prior-year figures.
| Role | HPSS Level | Approx. Weekly Min. | Key Entitlements |
|---|---|---|---|
| Dental assistant (entry) | L2 | $900 to $940 | Penalty rates; superannuation; 4 weeks leave |
| Experienced dental assistant | L3 to L4 | $980 to $1,100 | As above; higher rate for X-ray assistance |
| Dental hygienist | L5 | $1,200 to $1,360 | AHPRA registration required; uniform allowance |
| Dental therapist | L5 | $1,200 to $1,360 | AHPRA registration required |
| Oral health therapist | L5 to L6 | $1,300 to $1,450 | Dual qualification scope of practice |
| Prosthetist | L6 | $1,350 to $1,500 | Specialised technical qualifications |
| Practice manager | L7 to L8 | $1,500+ | Management loading; negotiated above award common |
| Reception / admin | HPSS L2 or Clerks Award | $850 to $1,000 | Award depends on primary duty classification |
Approximate only. Verify current rates at calculate.fairwork.gov.au. Rates change 1 July each year.
Associate Dentists: Contractor vs Employee and Super Obligations
The majority of dental practices engage associate dentists under service agreements that pay a percentage of billings rather than a wage. This arrangement is usually structured as a contractor relationship, with the associate holding an ABN. However, following the High Court's decisions in CFMMEU v Personnel Contracting Pty Ltd [2022] HCA 1 and ZG Operations v Jamsek [2022] HCA 2, the contractor vs employee test focuses primarily on the written terms of the contract, not the practical working arrangement.
Even where the legal classification as contractor is sound, the superannuation guarantee question is distinct. Under s12(3) of the Superannuation Guarantee (Administration) Act 1992, the SG obligation applies to a person who works under a contract that is wholly or principally for the labour of the person, regardless of whether they hold an ABN. Many associate dentist arrangements meet this description, which means the practice has an SG obligation on gross payments even where the associate is a contractor for other purposes. Seek specific advice from a registered tax agent about your associate arrangements.
| Factor | Employee Indicator | Contractor Indicator |
|---|---|---|
| Written contract terms | Describes employment relationship | Service agreement for provision of dental services |
| Equipment | Provided by practice | Associate uses own handpieces; chair/room provided |
| ABN / invoicing | No — receives payslip | Holds ABN; invoices practice |
| Financial risk | No personal financial risk | Bears risk of bad debts; self-indemnified |
| Super guarantee | Always applies | Likely applies under s12(3) SGAA |
| Leave entitlements | Always accrues | No leave (but super still applies) |
| STP reporting | Required via payroll | Not via payroll (but super fund reporting required) |
STP Phase 2 for Dental Practices
Single Touch Payroll Phase 2 requires employers to report disaggregated payroll data to the ATO in each pay run. For a dental practice, this means that base salary, allowances (uniform, travel, tool), overtime, leave loading, and bonuses must each be reported as separate income types. If your Xero Payroll is running all remuneration through a single gross pay item, your STP2 reporting is non-compliant.
The practical steps to review your dental practice STP2 compliance in Xero: review every pay item in Payroll Settings and confirm it has the correct STP2 income type assigned; check that any allowances paid are mapped to the correct allowance type code (not to gross salary); confirm that leave loading is reported separately where applicable; and check that any irregular or annual payments are correctly classified.
For detailed STP2 guidance, the ATO's STP Phase 2 employer guide is the authoritative reference.
Watch: Dental Practice Payroll Explained
Read the full video transcript
Running payroll for a dental practice is more complex than most practice owners expect, and the stakes are high. The Fair Work Ombudsman can audit any employer and underpayments in the health sector have been a specific compliance focus. Today I want to cover the award rates that apply to dental staff, the associate dentist contractor question, and the STP Phase 2 obligations that every dental practice needs to get right.
Most dental support staff are covered by the Health Professionals and Support Services Award 2020, commonly called the HPSS Award. This award sets minimum weekly pay rates across eight classification levels. Award rates change every July 1 in line with the National Minimum Wage Order. If you are doing your own payroll and you did not update your rates on July 1, you have been underpaying your staff since that date.
The associate dentist question is one of the most complex in dental bookkeeping. Most associates work under service agreements and invoice the practice for a percentage of billings. Following the High Court decisions in 2022, the contractor versus employee test focuses on the written contract terms. But the superannuation guarantee question is separate. Under the Superannuation Guarantee Administration Act, super must be paid to a person engaged wholly or principally for their personal labour, even if they hold an ABN. For most associate dentists, this means the practice has a super obligation regardless of the contractor classification. This is not a theoretical risk: the ATO has SG compliance as a priority focus.
STP Phase 2 requires every pay run to disaggregate pay into specific income types: base salary, bonuses, allowances, overtime, and leave loading must each be reported separately in Xero Payroll. If your payroll is running all remuneration through a single gross pay item, your STP reporting is non-compliant and your employees' income statements are incorrect. True Tally helps dental practices across Victoria set up award-compliant payroll in Xero and ensure STP Phase 2 is configured correctly. Book a free call at truetally.com.au or call 0468 159 950.
Last updated July 2026
Frequently Asked Questions
What award covers dental assistants?
The Health Professionals and Support Services Award 2020 covers dental assistants and most dental practice support staff. Rates change on 1 July each year. Use the Fair Work Pay Calculator for current figures.
Do I pay super on associate dentist payments?
Likely yes. Under s12(3) of the SGAA 1992, the super guarantee applies to contractors engaged wholly or principally for their personal labour. Most associate dentist service agreements meet this description. Seek specific advice from a registered tax agent.
What is STP Phase 2 for payroll?
STP2 requires each pay run to report disaggregated income types separately: base salary, allowances, overtime, leave loading and bonuses all need separate pay item classifications in Xero Payroll mapped to the correct ATO income type codes.
Dental practice payroll review
True Tally reviews award rate compliance, STP Phase 2 pay item setup, and super obligations for dental practices across Victoria. Book a free 20-minute call.
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