Payroll tax changes for medical practices

The Queensland Commissioner of State Revenue has issued a public ruling outlining her approach to payroll tax on medical practices. As expected, it takes a very hard line.

The ruling has come as a result of several recent payroll tax cases in this area.

The new public ruling on payroll tax on medical practices concludes:

“If a medical centre engages a practitioner to practise from its medical centre, or holds out to the public that it provides patients with access to medical services of a practitioner, it is likely the relevant contract provisions will apply to the contract with the practitioner unless an exception (i.e. exemption) applies.”

What does this mean for medical practices, and what changes do medical practices have to make?

It is very important that every medical practice review its arrangements to see if the payroll tax provisions apply. In some cases, changes can be made to those arrangements to reduce exposure to payroll tax.

All jurisdictions except Western Australia have this provision. Western Australian practices should be on high alert, however, as other provisions of the payroll tax Act could apply.

The Office of State Revenue in Queensland has acted; you can be sure that the others will not be far behind.

Moore information

If you would like to find out more or require assistance, please contact your local Moore Australia advisor.

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