The Queensland Government has just announced that a tax ruling will be issued next week to make it clear that, under normal business arrangements, GPs will not be subject to payroll tax as long as patients pay them directly.
The media release from the RACGP, lauding the decision of the Queensland Government, can be found here.
On the face of it, it looks like a very favorable result. However the devil will be in the details of the ruling, and at this stage it appears that the ruling will be limited to GPs and will not extend to specialists, dentists and allied health practitioners.
We will provide a further update next week once the tax ruling has been released.
Our corporate/commercial partner, Antony Harrison, will also be discussing payroll tax issues and the impact of this ruling for specialists at the RACP payroll tax event next Tuesday (19 September).