Changes to payroll tax impacts medical services industry
23 Jul 2024
On the 18 June, as part of the 2024-2025 State Budget, the NSW Treasurer Daniel Mookhey announced the Revenue Legislation Amendment Bill 2024, which amends the Payroll Tax (medical centres) to include the Bulk Billing Support Initiative, and states medical centres paying wages to contractor GPs will receive payroll tax relief:
- for unpaid payroll liabilities prior to 4 September 2024, an exemption from payroll tax
- from 4 September 2024, a rebate for payroll tax on wages on contractor GPs if the medical centre meets certain bulk billing thresholds:
- at least 80 per cent of services if located in metropolitan Sydney
- at least 70 per cent of services if located elsewhere
Read more about payroll tax treatment for medical services (including additional exemptions for contractors).
You can also see the annual tax-free threshold and tax rates here. Practices are encouraged to review their arrangements with contractors and (in particular, their medical practitioners) and seek professional advice on their current arrangements and potential alternatives.
Please note, SWSPHN cannot offer any advice regarding this matter.