Concerns continue to be raised about the Queensland Government’s charging of payroll tax to GPs. In response to our recent letter to the QLD Treasurer regarding, the following has been provided (in italics):
Payroll tax is administered in accordance with the Payroll Tax Act 1971 (Payroll Tax Act), which provides the legislative basis for the imposition of payroll tax in Queensland. Relevantly, payments made to contractors are subject to payroll tax, unless an exemption applies.
The contractor provisions in their current form have been in place since 2008. QRO has not changed how it administers these provisions in relation to medical practices.
In response to requests for guidance from the medical industry, QRO has published Public Ruling PTAQ000.6.1 Relevant contracts-medical centres which clarifies how the Payroll Tax Act applies to certain contractual arrangements between medical practices and GPs.
As you may be aware, to support medical practices to come into compliance with their payroll tax obligations, the Queensland Government has announced a payroll tax amnesty on payments made to contracted GPs up until 30 June 2025.
The amnesty provides medical practices who are not currently complying with their payroll tax obligations, or have been subject to audit activity, in relation to payments to contracted GPs with time to review their arrangements, seek advice, and implement necessary changes to ensure future compliance with their payroll tax obligations. Medical practices that receive the amnesty would not be required to pay payroll tax on payments made to contracted GPs until 1 July 2025.
The action taken by the Government to address this issue, means Queensland is the most generous state for delivering real support for our hard working GPs. In dollar terms, this means our Government is providing an amnesty at a cost to the budget of $100 million per year. This will give relevant medical practices sufficient time and resources to ensure that they are able to come into compliance with the application of payroll tax to their business when the amnesty expires on 1 July 2025.
Further information about the amnesty is available online at https://qro.qld.gov.au/payroll-tax/liability/contractor-payments/amnesty.
Further information
Please see our previous update at www.sandybolton.com/gp-payroll-tax-january-2023 which provides more information on Payroll Tax.
Further direct advocacy regarding payroll tax can be directed to the QLD Treasurer via treasurer@ministerial.qld.gov.au and please cc’ our office in via noosa@parliament.qld.gov.au and forward any response you receive to us.
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