The AMA (NSW) has reportedly recently been in touch with its members to warn of payroll tax audits and the application of a recent Victorian Court of Appeal decision – Commissioner of State Revenue v The Optical Superstore Pty Ltd (Optical Superstores). The Optical Superstores decision significantly increases the risk that many medical practices will become liable for a large amount of payroll tax – we wrote about that decision here.
The AMA (NSW) President has also recently called for changes to the NSW payroll tax laws – warning of the risk posed by Optical Superstores.
Payroll laws are similar across jurisdictions, and Optical Superstores increases the risk that some medical practices may be liable for payroll tax – not only in New South Wales but Victoria, Queensland and other jurisdictions too.
It’s important that medical practices obtain individual advice about their structure in order to understand their exposure to payroll tax. At Mahoneys, we regularly help our healthcare clients structure their practices – see our previous article for more detail on this here.
If you’d like advice on what Optical Superstores means for your practice, please get in touch for an obligation-free phone call.