[Australia] Queensland payroll tax amnesty

Medical practices in Queensland who have not been paying payroll tax on payments to contracted GPs may be eligible to apply for the recently announced Queensland Payroll Tax Amnesty. Mondaq has further details.

Following the December 2022 QRO ruling, the Queensland Government announced a payroll tax amnesty would be applicable to medical centres making payments to General Practitioners (GPs). Relief from the obligation to pay payroll tax has obviously been welcomed by medical practices. However, the eligibility criteria for the amnesty limits the number of medical centres that will benefit. Mondaq summarises who is eligible and what are they eligible for

What is the Amnesty?

Successful Practices will not have to pay payroll tax on 'payments made to contracted GPs up to 30 June 2025 and for the previous 5 years (i.e. 2018-25)'.

Eligibility

The QRO website (as of 2 March 2023) states, "the amnesty may be available to medical practices that have:

• not been paying payroll tax on payments to contracted GPs
• been, or currently are, subject to compliance activity in relation to payments to contracted GPs."

And is not available to:

• "Other medical doctors or allied health professionals.
• Medical practices that are already complying with payroll tax obligations
• New Medical Practices
• Non-Medical Businesses that are currently paying payroll tax on contractor payments."

Those just starting out as a medical practice will therefore need to pay payroll tax on payments to contractors and are not eligible for this amnesty. More information is available about that here.

For those already complying, this amnesty does not change the position, they must continue to pay payroll tax to contracted GPs.

The Queensland Government is reportedly taking this action in response to the lack of awareness across the community that medical practices are liable to pay payroll tax on contracted general practitioners (GPs).

The ‘grey area’ and what to do

Currently, it remains unclear whether or not agreeing to the amnesty represents an inadvertent statement that a medical practice is making taxable payments to contractor GPs, which may have future implications post-2025. Depending on the exact arrangement, a Practice may fall outside of the contractor provisions so Mondaq says it does not recommend rushing to register.

Further details will reportedly become available soon. Industry experts have noted that the exact terms of the amnesty are still being finalised. Therefore, Mondaq recommends hitting pause and not expressing interest or registering until the Government has finalised these terms. It is important, regardless of this amnesty, to be ahead of the game when it comes to a Practice's arrangements and the subsequent risk of payroll tax liability it may be exposed to, so obtaining legal and accounting advice is recommended.

How to apply

Prior to June 30, 2023, expressions of interest can be submitted via the form on the QRO website. Practices will then be contacted about the next steps. As emphasised above, however, Mondaq recommends your first step should be seeking legal and accounting advice tailored to your Practice before registering such interest.

Source: Mondaq

(Links and quotes via original reporting)

Medical practices in Queensland who have not been paying payroll tax on payments to contracted GPs may be eligible to apply for the recently announced Queensland Payroll Tax Amnesty. Mondaq has further details.

Following the December 2022 QRO ruling, the Queensland Government announced a payroll tax amnesty would be applicable to medical centres making payments to General Practitioners (GPs). Relief from the obligation to pay payroll tax has obviously been welcomed by medical practices. However, the eligibility criteria for the amnesty limits the number of medical centres that will benefit. Mondaq summarises who is eligible and what are they eligible for

What is the Amnesty?

Successful Practices will not have to pay payroll tax on 'payments made to contracted GPs up to 30 June 2025 and for the previous 5 years (i.e. 2018-25)'.

Eligibility

The QRO website (as of 2 March 2023) states, "the amnesty may be available to medical practices that have:

• not been paying payroll tax on payments to contracted GPs
• been, or currently are, subject to compliance activity in relation to payments to contracted GPs."

And is not available to:

• "Other medical doctors or allied health professionals.
• Medical practices that are already complying with payroll tax obligations
• New Medical Practices
• Non-Medical Businesses that are currently paying payroll tax on contractor payments."

Those just starting out as a medical practice will therefore need to pay payroll tax on payments to contractors and are not eligible for this amnesty. More information is available about that here.

For those already complying, this amnesty does not change the position, they must continue to pay payroll tax to contracted GPs.

The Queensland Government is reportedly taking this action in response to the lack of awareness across the community that medical practices are liable to pay payroll tax on contracted general practitioners (GPs).

The ‘grey area’ and what to do

Currently, it remains unclear whether or not agreeing to the amnesty represents an inadvertent statement that a medical practice is making taxable payments to contractor GPs, which may have future implications post-2025. Depending on the exact arrangement, a Practice may fall outside of the contractor provisions so Mondaq says it does not recommend rushing to register.

Further details will reportedly become available soon. Industry experts have noted that the exact terms of the amnesty are still being finalised. Therefore, Mondaq recommends hitting pause and not expressing interest or registering until the Government has finalised these terms. It is important, regardless of this amnesty, to be ahead of the game when it comes to a Practice's arrangements and the subsequent risk of payroll tax liability it may be exposed to, so obtaining legal and accounting advice is recommended.

How to apply

Prior to June 30, 2023, expressions of interest can be submitted via the form on the QRO website. Practices will then be contacted about the next steps. As emphasised above, however, Mondaq recommends your first step should be seeking legal and accounting advice tailored to your Practice before registering such interest.

Source: Mondaq

(Links and quotes via original reporting)