Tax Vax: The Medical and Healthcare Payroll Tax Pandemic?

Hi Everyone,?

Don’t panic about the contagious payroll tax pandemic; just educate yourself first.?

Payroll Tax Pandemic?

Another scary GP payroll tax story: AusDoc Special Report: General Practice and its battle with the ‘existential’ threat of payroll tax”, 6 June 2023. It was great to catch up with many of you.

Dr Aaron Chamber's QLD payroll tax experience reveals it is seriously contagious; it affects the very livelihood of practitioners and practice owners.?

It is clear, paying back up to 5 years' worth of taxes is a real but preventable threat.

The article is an apocalyptic read, notably pending “bankruptcies”, no political or legal appetite for exemptions. The ‘RACGP national Vice president, Dr Willet grimly sums it up “there is no silver bullet”.?

On the contrary, I agree to a limited extent. What was not said, there is evidence that there is a silver lining to more vigilant tax-compliant practices.

Post Naas April 2023

Post-the landmark court cases?(i.e., Naas and Super Optical), we have applied and can confirm many practices to secure payroll tax exemptions and use clearing accounts. Practices with the right business model and arguments can win against the SRO.

An emerging and important side note is that many current and new State and Federal contractor laws govern your practice (i.e., service entity) arrangements. Do not forget to address these at the same time with your advisers.?

Legal silver bullet(s) do exist

Legal silver bullets do exist; you just have to look for them. The Courts and the government have been more than clear.

Under the new 2022 ATO contractor laws, if you want to access the “safe harbour rules” untested template agreements are not good enough.?

Using the Tenant DoctorTM model (referred to by the RACGP’s Dr. Bruce Willet), maybe a way forward.?

If you take a deep dive look, the Courts, ATO, and QRO have ruled that how you go about it is critical.

After successful private State (payroll tax) and Federal ATO rulings, we are applying for a national Federal Court ATO class ruling. A modified version for your local state payroll tax offices will be sent to each State payroll tax office.

The Tenant DoctorTM Model?

The Tenant Doctor model is based on legal and commercial principles vetted by tax and commercial lawyers and accountants.

The Five Tenant DoctorTM Principles

These 5 key tax-tested Tenant DoctorTM principles should provide some relief and guidance you can discuss with your advisers.?

The Tenant Doctor model has a silver lining. It may even be a silver bullet. In the meantime, you need to decide for yourself. What other option(s) do you have?

This article should provide some useful guidance and debunk some myths. I am open to constructive feedback.

This should reduce any unnecessary concern, time, and money spent on this issue. See Practice Managers you are on notice!: “Medical Centre” Payroll Tax and Federal Court Ruling targets how you run your practice!

We are planning a “Tax Vax” webinar. The aim is to debunk any myths or unnecessary fears. Watch this space, or DM me for details.

Doing nothing is not really an option. It is a high-risk position to take.?

Stay humble, curious, and focused.