Great News for GP’s (and hopefully other medical professionals) regarding Payroll Tax

(This article is written by Director of Business Services and Taxation, Brendan Campbell)

This morning we received some welcome news for GPs (and hopefully other medical professionals) regarding payroll tax in an article from the Courier Mail. The Queensland Treasurer and Premier have agreed to apply a grace period on the interpretation changes to payroll tax handed down in Queensland Office of State Revenue (OSR) public ruling PTAQ000.6.1 until July 2025.

The OSR ruling that was handed down days before Christmas deals with relevant contracts and links the independent contractors in medical centres to the medical centre and effectively groups them for payroll tax. This was a shift from the previous interpretation by the Queensland OSR in line with New South Wales and Victoria’s recent interpretations that we discussed in a previous article here.

The Courier Mail article references GP Practices but it is hoped this will also apply to Dental Practices and also other Medical Centres that the OSR ruling referenced.  We would also love to see the other states follow the Queensland Government lead on this and also offer a grace period in their states.  This will be welcome news to many clients and contacts of Prosperity,  as we have been fielding calls from concerned practice owners regarding their options in regards to this new public ruling.

The aim is to allow Practices time to restructure by July 2025 in line with the public ruling.  While this is just an article and there will obviously more to follow, this is great news for the industry that was at the forefront of getting us through a pandemic.

For more information on the ruling and how it will affect your practice, as well as what a re-structure would look like from a tax and practical point of view (if necessary) please contact Prosperity who specialise in providing advice to the medical industry.