New Graduate Physio Salaries: What $90K Really Means in 2025

In 2025, a fundamental shift is happening across Australia’s allied health sector — and it’s being felt most acutely in the debate around new graduate physio salaries.

Whether you’re a clinic owner, practice manager, or a graduate entering the profession, the landscape has changed. And it’s not just about wages. It’s about value. Structural inequality. Workforce planning. And a reckoning that’s been coming for more than a decade.

What $90K New Graduate Physio Salaries Really Mean in 2025

For years, the award wage for new graduate physiotherapists has hovered around the same level as entry-level roles in hospitality and retail. In some states, Kitchen Assistants are earning $27–33 per hour, which — on a base 38-hour week — is equivalent to the current physiotherapy award.

Let’s pause on that. A four- to six-year university-qualified health professional starting in private practice is paid the same hourly rate as someone reheating food.

That is the uncomfortable truth many in our profession have ignored. Until now.

Why 90K Is More Than Fair — It’s Overdue

The Fair Work Commission’s proposed wage changes, coupled with the ACTU’s submission, may soon lift new grad pay to $90,000–95,000. That sounds like a big jump — and it is. But it’s also long overdue.

“When I started in private practice in 2009, I would have killed for a six-figure salary,” says Shane Gunaratnam. “We’ve been underappreciated for far too long.”

The Real Force Driving This? Market Failure

Here’s the truth: Most physio clinics have relied on underpaying new grads to stay afloat. But the model is broken.

Public health, aged care, and NDIS-funded roles now regularly offer $90–100K packages for new grads. In contrast, many private practices are still trying to hire at $65–75K — and wondering why they’re not getting applicants.

Culture of One puts it simply: “If your business model breaks at 90K, your business model is broken.”

Anchoring Bias and the Undervaluation of Care

There’s an anchoring bias at play here. For years, clinic owners have gotten used to the idea that new grads aren’t “worth” more than $65K. But this belief ignores both market trends and basic economics.

It also fails to account for the real value of early-career clinicians.

• Energy
• Empathy
• Commitment
• Connection

“Most patients don’t care if your AP mob on C3 hits C4. They care if you care. If you show up, communicate well, and follow through.”

There Are Only Two Types of Clinics Now

With these new wage standards looming, there’s a natural sorting happening. Clinics fall into one of two camps:

1. Those that can support, train, and develop new grads
2. Those that can’t — and shouldn’t try

If you don’t have the infrastructure to support a new grad — regular mentoring, structured onboarding, time-blocked supervision — you’re not in a position to hire one.

And that’s okay. Better to opt out than to hire poorly and burn everyone out.

Culture of One puts it bluntly: “If you miss the top 20%, you’ll end up paying 90K for average results and no ROI. That’s a lose-lose.”

So Who Should You Hire?

Here’s the playbook Culture of One recommends for making new graduate physio salaries work in private practice:

• Hire only full-time grads
• Target the top 20% (high-agency grads, not just high grades)
• Prioritise confidence, not just competence
• Provide a minimum of two hours/week of structured mentorship
• Back them: fill their books, advertise, create safety and momentum

Pricing Must Catch Up — Or Clinics Will Fail

Many practice owners are nervous about paying more because they haven’t lifted their prices in years. That, Culture of One argues, is the real problem.

“Coffee costs $6 and takes 45 seconds to make. A single cup costs 45 cents. But people pay thousands a year for the ritual.”

The reality is, private practice healthcare pricing is irrational. The sector has artificially capped itself out of fear. But let’s be clear: nobody can afford to pay new grads $90K and charge $90 per consult.

Culture of One recommends aiming for $250/hour by 2030 to build a sustainable model.

What Does This Mean for You?

If you’re a clinic owner, you have three choices:

1. Complain and get left behind
2. Pay more without a plan and bleed cash
3. Adapt your model — raise prices, hire better, mentor deeply

This is the turning point. And it’s not just about wages — it’s about your model, your mindset, and your margin.

Final Word: New Grads Are Not The Problem — The System Is

Let’s stop punishing new grads for the sector’s fragility.

Let’s stop saying “they’re not good enough” when we haven’t given them the tools, support, and time to become excellent.

“The problem isn’t $90K salaries. The problem is $90K expectations with no support, no structure, and no strategic pricing,” says Shane Gunaratnam.

If you’re going to hire, hire well. If you’re going to lead, lead boldly. And if you’re going to pay $90K — make sure your business is built to make it work.