On 22 May 2024, both the Victorian and South Australian governments announced GPs who offer bulk-billing consultations will receive exemptions from payroll tax.

The Victorian government published a media release announcing that GP practices will:

1. receive an exemption from outstanding or future assessment for payroll tax on payments to contractor GPs up until 30 June 2024;
2. receive a further 12 month exemption from payroll tax for payments to contractor GPs until 30 June 2025 (for practices that have not already begun paying payroll tax on payments to their contractor GPs); and
3. receive an exemption from payroll tax for payments to contractor GPs and employee GPs for providing bulk-billed consultations from 1 July 2025.

The South Australian government released a statement that wages earned by GPs who bulk-bill patients will be exempt for the purpose of the payroll tax legislation.

While this is great news, the announcements are merely that, announcements.  Care needs to be had to the extent to which you should rely upon these announcements as they are only the first step. We will have to wait for the finer details to be provided when a public ruling is released.

Mahoneys’ dedicated commercial team specialises in commercial, consumer and corporate law; commercial property; personal and corporate structuring; and estate and succession planning, with specific expertise on how each of those areas of law affects the medical, dental and allied health industries.

Please contact Sabrina Austin (saustin@mahoneys.com.au) or Antony Harrison (aharrison@mahoneys.com.au) if you would like advice on how the announcement may affect your medical practice.

Written by Sabrina Austin

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