*Updated September 2023

Background

Following the Queensland Revenue Office’s (QRO’s) recent public ruling which placed medical practices squarely in their sights for payroll tax, the QRO is offering a payroll tax amnesty for medical practices contracting with General Practitioners (GPs) in defined circumstances. The limited nature of the amnesty (focussing solely on GPs) means that the announcement offers no relief for other businesses and the broader medical community.

Details of the Amnesty

As we have outlined in our recent webinar and article, the new ruling introduces current and historical payroll tax risks for medical centres who engage medical, dental and other health practitioners. However, in response to the public’s reaction, the Queensland Government has announced that a payroll tax amnesty will apply to GPs contracted by medical centres.

The amnesty was originally offered for eligible entities who completed an expression of interest form by 30 June 2023, however this date has been extended to 10 November 2023. Those practices that successfully apply for the amnesty will not be required to pay payroll tax in respect of payments made to GPs from medical centres during the financial years from 1 July 2017 until 30 June 2025.

The amnesty is specifically not available to other medical doctors or allied health professionals, medical practices who are already complying with payroll tax obligations, new medical practices and non-medical businesses.

How should I respond?

The effects of the QRO’s ruling on medical businesses should not be underestimated or ignored. All practices need to assess and quantify the potential risks for their businesses and determine how to respond.

For those that are eligible for the amnesty, the deadline should be considered and appropriate action taken before the deadline, based on individual circumstances.

Contact Pilot

If you would like assistance with deciding how your business responds to this issue, please contact Murray Howlett, Angela Stavropoulos, Kristy Baxter or your Pilot advisor on (07) 3023 1300.