Concerns have been raised about the Queensland Government’s charging of payroll tax to GPs.

We have been advised that payroll tax is not a new requirement, but rather there has been a pre-existing understanding of QLD’s payroll tax provisions. The current approach by the QLD Revenue Office (QRO) to payroll tax is in line with new, clarifying legal precedent. This legal precedent, and associated tax decisions have been decided and handled independently from Government.

We have been advised that the QRO is working with the Royal Australian College of General Practitioners (RACGP) and the Australian Medical Association of QLD (AMAQ) and is continuing to engage on this issue. At the request of RACGP and AMAQ a ruling was provided in December 2022, which does not change the law or practice, but provides a detailed explanation of the QRO’s position.

As part of that process, the QRO has agreed to limit the time period of audits on GPs to the 2021-22 financial year and future years and has also re-affirmed that it will not specifically target medical practices.

This is not a QLD only issue but is occurring across Australia and you can read an example from NSW at www.amansw.com.au/payroll_tax as a comparison.

Payroll Tax has a national approach with all states harmonised to apply payroll tax in a consistent manner. Individual states do not exempt particular industries or professions as a national approach is particularly important for businesses that operate across state and territory borders. Due to this, the QLD Premier has proposed an amnesty on payroll tax for contracted GPs until 30 June 2025 and we await the National Cabinet decision. You can read more about harmonisation of payroll tax at www.sandybolton.com/harmonisation-of-payroll-tax-in-australia.

With funding for primary healthcare including Medicare rebates being a national matter, those with concerns relating to the financial viability of their local GPs and private medical specialists and any decisions they have made in relation to bulk-billing, are encouraged to contact their local Federal MPs to advocate for improved funding models and supports for all primary health providers.

  • Wide Bay MP – Llew O’Brien  llew.obrien.mp@aph.gov.au
  • Fairfax MP – Ted O’Brien ted.obrien.mp@aph.gov.au