In light of an incoming exemption, the Queensland Revenue Office has confirmed that GP practices no longer have to register for payroll tax or make voluntary disclosures.
A Queensland parliamentary committee has recommended the state not only pass a bill that would exempt GP practices from paying payroll tax but also clarify which exemptions may apply to non-GP specialists.
The committee’s final report was tabled last week, calling the move to exempt general practice from payroll tax a “sensible and important” amendment.
Beside the headline recommendation to pass the bill, the report also called for the Queensland Revenue Office to update guidance on the need for practices to comply with data disclosure arrangements put in place during the amnesty period, alongside “clear and updated guidance” on the existing exemptions for non-GP specialist doctors.
The QRO has already actioned the former.
In a letter to the AMA Queensland dated 12 February, the state revenue commissioner confirmed that his office had contacted relevant medical practices on 6 February notifying them that they were “no longer required to make a voluntary disclosure or [if they] have already made a voluntary disclosure, do not need to do anything else for the amnesty”.
The only exceptions to the rule, the commissioner said, were a “small number of medical practices” that are required to provide further information on a case-by-case basis.
The QRO is in contact with those practices.
Both the RACGP and AMAQ made submissions to the parliamentary committee that members had been reporting that ongoing disclosure requirements were costly and time-consuming for practices.
“The QRO has written to AMA Queensland confirming it has removed requirements for most general practices to register for payroll tax and make voluntary disclosures,” AMAQ president Dr Nick Yim said.
“We are also relieved Queensland Treasury answered our calls to confirm the exemption for general practices will not be tied to bulk billing.
“This is win for preventive health and something other jurisdictions were not as fortunate to avoid.”
Related
As for the dream of a non-GP specialist payroll tax exemption?
Simplifying tax arrangements for non-GP specialists was not within the scope of the committee, and the QRO letter to the AMAQ simply highlighted its page with information on contractor payment exemptions.
Queensland’s exemption only applies to state-based payroll tax; it does not affect operations of the Australian Taxation Office.
David Dahm, an accountant who largely works with primary care businesses, told The Medical Republic that some practices could still benefit by restructuring to a stricter tenant doctor model.
“Ultimately, restructuring or reconfirming arrangements is still necessary, as this exemption does not cover all medical and allied health professionals for both state and federal taxes and Fair Work obligations,” he said.
“Other liabilities, including unpaid employee-like subcontractor superannuation and leave entitlements, as well as GST liabilities, remain unaffected by this Queensland payroll tax ruling.”
