Updated Guidance on Payroll Tax Exemptions for GP Contractors
Revenue NSW has issued updated Compliance Practice Note (CPN 036v2), clarifying payroll tax relief measures for medical centres engaging contractor general practitioners (GPs).
The update aligns with the Revenue Legislation Amendment Act 2024 (NSW), which introduces key payroll tax exemptions and rebates for medical centres, effective 4 September 2024.
Key Changes in Payroll Tax Exemptions
1. Payroll Tax Exemption for Past GP Wages
Medical centres will not be liable for unpaid payroll tax on GP wages prior to 4 September 2024. This relief ensures that past liabilities do not burden medical centres financially.
2. Payroll Tax Rebate for GP Contractor Wages
From 4 September 2024, eligible medical centres can claim a rebate on payroll tax for wages paid to GP contractors, provided they meet the following billing thresholds:
- 80% of services must be under prescribed billing arrangements in Metropolitan Sydney.
- 70% of services must be under prescribed billing arrangements elsewhere in NSW.
3. Expansion of ‘Prescribed Billing Arrangements’
The term “bulk billing arrangements” has been replaced with “prescribed billing arrangements” to also include veteran healthcare arrangements.
Medical centres must maintain detailed records of services provided and payroll tax calculations to support any rebate claims.
Queensland Payroll Tax Amendments
Similar measures are being introduced in Queensland, where the Revenue Legislation Amendment Bill 2024 aims to formally incorporate the payroll tax exemption for GPs into the Payroll Tax Act 1971 (QLD). If passed, this exemption will apply from 1 December 2024.
The Queensland Revenue Office (QRO) has also updated its Public Ruling PTQ000.6.4, clarifying how payroll tax applies to medical centres, dental clinics, physiotherapy practices, radiology centres, and similar healthcare providers engaging contractors.
How Boa & Co. Can Assist Your Medical Practice
Ensuring compliance with payroll tax laws is critical for medical centres, dental clinics, and allied health practices. At Boa & Co. Chartered Accountants, we provide:
- Payroll tax compliance reviews
- Assessment of eligibility for rebates and exemptions
- Guidance on maintaining payroll records for audits
Contact us today at 1300 952 286, email [email protected], or visit www.boanco.com.au to ensure your medical practice remains compliant while maximising tax benefits.