Victoria GP Practices: Essential Updates on Government Payroll Tax Relief from the SRO
In our last article, we explored how payroll tax applies to Victorian medical practices.
On 22 May 2024, the Victorian Government announced significant payroll tax changes aimed at providing relief for general practice (GP) businesses. Here’s what you need to know:
Relief for Periods up to 30 June 2024
All Victorian GP businesses can apply for relief from any outstanding or future payroll tax assessments related to payments to contractor general practitioners for any period up to 30 June 2024.
For the purpose of the relief:
- “Victorian GP businesses” refers to medical practices in Victoria providing services by general practitioners, excluding hospitals.
- “general practitioner” is defined as:
- Specialist General Practitioners under the National Law (Health Practitioner Regulation National Law (Victoria) Act 2009),
- Prescribed Medical Practitioners (as defined in MBS Note AN.7.1) who primarily deliver general practice services, and
- Medical practitioners on an accredited general practice training pathway in line with the Health Insurance (General Medical Services Table) Regulations 2021.
- "Outstanding assessments" are assessments not yet paid or any unpaid component of partially paid assessments.
- "Future assessments" refer to assessments issued after 22 May 2024.
Eligible GP businesses with outstanding assessments will be contacted directly by the SRO before 15 December 2024 with information on ex-gratia relief options.
Relief for 2024-25 Financial Year
Victorian GP businesses may also qualify for payroll tax relief on contractor GP payments for the 2024-25 financial year if they have not been advised of or paid payroll tax on these payments by 22 May 2024.
Looking Ahead: New Payroll Tax Exemption from 1 July 2025
Legislation introduced to Parliament proposes a payroll tax exemption for wages paid to contractor and employee GPs for bulk-billed consultations, effective from 1 July 2025. If passed, this exemption will provide long-term relief for eligible GP practices.
Other Medical Professionals and Allied Health
It is important to note that these changes only apply to GP businesses and do not apply to other medical professionals or allied health professionals.
We recommend that other medical and allied health professionals review and confirm wage disclosures up to 30 June 2024 to ensure compliance. Refer to our last article for information about the general application of payroll tax.
Next Steps
Stay informed about these changes and other payroll tax updates by subscribing to our email list. For further assistance or to discuss how these changes may impact your practice, please contact the employment law team at Hicks Oakley Chessell Williams. We’re here to help you navigate these updates and explore your options for compliance and relief.
Disclaimer: The content provided in this publication is intended for general informational purposes only and should not be construed as tailored advice to address specific individual or organisational circumstances. While we strive to offer accurate and up-to-date information, we cannot guarantee its accuracy at the time of receipt or its continued accuracy in the future. Readers are encouraged to seek professional advice or consult relevant authorities regarding their unique situations.
