Changes to payroll tax for Victorian and South Australian GPs
This week, the Victorian and South Australian Governments unveiled significant changes to payroll tax rules, providing much-needed relief for GPs who offer bulk-billing services. These changes, designed to ease the financial burden on healthcare providers, will have a positive impact on GPs and medical practices in both states.

Victoria: payroll tax exemptions for GPs

On 22 May 2024, the Victorian State Government announced a series of payroll tax exemptions for GPs and medical practices.  Following consultation with the healthcare sector and other Australian States, the Victorian State Government introduced several key exemptions:

  • All Victorian general practice businesses will be exempt from any outstanding or future payroll tax assessments on payments to contractor GPs up to 30 June 2024.
  • A further 12-month exemption will extend to 30 June 2025 for GPs businesses that have not begun paying payroll tax on contractor payments.
  • From 1 July 2025, a payroll tax exemption will apply to payments to contractor and employee GPs providing bulk-billed consultations.

South Australia: permanent payroll tax cuts

Simultaneously, the South Australian State Government announced permanent payroll tax cuts for GPs providing bulk-billed services. This decision follows discussions with the Royal Australia College of General Practitioners SA and Australian Medical Association SA in response to the NSW Supreme Court ruling affirming GPs payroll tax liabilities.

From 1 July 2024, the proposed payroll tax exemptions will apply to all GP practices liable for payroll tax, covering both employee and contractor GPs. The exemption includes practices benefiting from the State Government’s current payroll tax amnesty, which expires on June 30, and those that have met existing payroll tax exemptions.

The proposed Payroll Tax Act 2009 amendments will be included in the South Australian State Budget Bill on June 6.

Broader Implications 

These announcements mark crucial developments for GP practices in Victoria and South Australia, significantly supporting those providing bulk-billed services.  As Queensland and NSW prepare to release their state budgets in June 2024, we anticipate further announcements regarding payroll tax liabilities and the impact of GP medical practices over the coming weeks.

If you have any questions about the above payroll tax changes, please call your Prosperity advisor at 1300 795 515.

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