Queensland Government's general practitioners payroll tax relief announcement

An announcement by the Queensland Treasurer last week has provided a welcome relief for medical practices and a clearer understanding of how payroll tax will be administered in Queensland (Qld) in relation to payments to contracted General Practitioners (GP).

The Queensland Treasurer, Cameron Dick has announced that the Queensland Revenue Office (QRO) will be issuing an updated public ruling that will outline that patient fees, including Medicare benefits and out-of-pocket expenses that are paid directly to a GP, will not be subject to payroll tax.

GP’s operating under this kind of structure generally receive the income directly and then pay the medical practice a service fee for operating out of the practice.

Practices that are operating under different structures, where the medical practice is receiving the patient fees and then making payments to the GP’s (net of services fees), may still be subject to payroll tax.

The Treasurer also announced that due to this update to the public ruling, the deadline for the expression of interest for the amnesty has been extended from 29 September 2023 to 10 November 2023.

Under the amnesty (registration required by 10 November 2023), practices making payments to GP’s will have until 30 June 2025 to make a voluntary disclosure/ register for payroll tax if not already registered. While participation in the amnesty will exempt payments of payroll tax on contracted GP payments from the 2018 financial year through to 30 June 2025.

Please be aware that payroll tax is a state-by-state tax and its application differs across states. Practices that fall within the jurisdiction of payroll tax in Qld may be impacted by these announcements. We encourage clients to review their current structure and potential exposure.

If you would like to discuss your current structure and potential exposure to payroll tax or would like to know more about these recent updates, please contact your usual Mazars advisor, the author, or our experts below. 

Brisbane – Tim Taylor

Melbourne – Michael Jones 

Sydney – Stephen Baxter

+61 7 3218 3900 

+61 3 9252 0800 

+61 2 9922 1166 

Author: Michael Glasper 

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Published: 22/09/2023

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