Payroll Tax Update

On 22 December 2022, the State Revenue of Queensland issued Payroll Tax Ruling PTAQ000.6.1 to deal with the application of payroll tax to medical centres.

The Ruling aimed to shed some light on the application of Payroll Tax to the medical industry.

Discussions with Queensland Revenue have indicated the following:

• Queensland Revenue will apply a compliance limitation period to matters covered by the Ruling. It appears Queensland Revenue will only look to impose the Ruling for 2021/2022 and later years.

• Further clarification is required about Queensland Revenue’s treatment of different third party arrangements; for example, a billing company collecting fees for the Doctor or the Doctor receiving their fees directly may change their payroll tax position.

• On 3 February 2023, the Queensland government announced an amnesty on payments to contracted GPs until 30 June 2025. Medical practices will need to apply for the Amnesty and will not be required to pay payroll tax on payments to contracted GPs up to 30 June 2025. The amnesty is only available to GPs.

• We await the final ruling CPN 022 to be issued by Revenue NSW

It remains to be seen how the Ruling from Queensland Revenue will impact other Payroll Tax jurisdictions (namely VIC and NSW).

Please contact your Consultant should you need to have further discussions.