Following the recent promises by the Queensland government to exempt GP practices from payroll tax, the Queensland Revenue Office (QRO) has released a Public Ruling confirming its position.

From 1 December 2024, wages paid or payable by a medical practice to a general practitioner (GP) will not be considered liable for payroll tax or the mental health levy.

This exemption applies to:

1. GPs registered in the specialty of general practice under Queensland’s Health Practitioner Regulation National Law;
2. GPs specified in certain clauses of the Health Insurance (General Medical Services Table) Regulations 2021 (Cth); and
3. prescribed medical practitioners who primarily provide services similar to those of a general practitioner.

For the purpose of the exemption, a “medical practice” refers to a business, excluding hospitals, that provide services typically offered by GPs, whether conducted from a physical location or remotely.

As strong supporters of the medical industry, we’re hopeful this brings much-needed clarity and relief to GP practices and their advisors.

If you would like advice on whether your practice may be exempt from paying payroll tax to GPs, please contact, commercial Partner, Antony Harrison on (07) 3007 3777 or aharrison@mahoneys.com.au.

Written by Antony Harrison

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