The following discussion continues on from a previous Health Alert in August 2023 ‘Victoria and New South Wales confirm payroll tax stance for medical and healthcare providers’ by Russell Kennedy – read it here.
Following the recent release of ruling PTA 041 addressing the application of NSW payroll tax to doctors and other medical and healthcare providers engaged under contractor arrangements, the NSW government has announced a 12 month “pause” on payroll tax audits, penalties and interest for general practitioners and their practices.
New development
On 24 August 2023, in response to ongoing consultations with the Royal Australian College of General Practitioners (RACGP) and the Australian Medical Association (AMA), the New South Wales Government, under the guidance of Minister for Finance Courtney Houssos, has announced a significant development. Effective immediately, there will be a 12-month “pause” of payroll tax audits targeting general practitioners and their practices.
This announcement follows the release of ruling – PTA 041 by Revenue NSW on August 11, 2023 which addresses the current payroll tax provisions concerning medical and healthcare providers in NSW. Their stated position is that there has been no change in law and these rulings merely provide clarity on the current position reflected in recent case law.
Under the new directive, tax penalties and interest on outstanding payroll tax debts accrued by general practitioner practices before and at the commencement of the 12-month period will also be paused. This policy change will be enacted through an amendment to the Revenue, Fines and Other Legislation Amendment Bill.
The stated purpose of the announcement is to alleviate uncertainty within the general practitioner community and allow for further ongoing consultation.
It should be noted that the “pause” appears to be limited to general practitioners and does not extend to contractor arrangements in other medical and healthcare settings.
Victoria still uncertain
The State Revenue Office in Victoria has issued its own public ruling on the topic – PTA-041. The Victorian Government is yet to announce any departure from the SRO’s stated position in the ruling, but the RACGP and AMA are continuing to lobby for ‘urgent intervention’.
How we can help
Russell Kennedy’s expert health law team is staying up to date on all developments.
For further information or assistance, please contact Rohan Harris, Michael Gorton AM, Jonathan Teh, Felicity Iredale or Jacqueline Vuong.
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