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RACGP wins payroll tax reprieve for SA general practice
By Matthew Holden, Managing Partner
25 July 2023
The Royal Australian College of General Practitioners (RACGP) has successfully campaigned for a payroll tax reprieve for general practices in South Australia (SA).
Key points:
- The SA Government has announced a 12-month payroll tax amnesty for GP practices, valid until June 30, 2024. This falls short compared to Queensland's amnesty, which extends until June 2025.
- GP practices must submit their applications for the amnesty by September 30, 2023.
- By registering for the amnesty, practices safeguard themselves against retrospective penalties.
- RevenueSA will collaborate with registered practices to provide tailored advice regarding their payroll tax liabilities.
This amnesty presents an opportunity for practices to seek clarity from a State Revenue Office on the various models for engaging practitioners, and whether any of these models preserve the intent of the independent practitioner tenant arrangement and protect practices from these arrangements being deemed as “relevant contracts” for which payroll tax must be paid. The grace period allows registered practices to modify their structures if necessary.
Wait, devil is in the detail
On the other hand, there is a risk of unnecessary scrutiny for practices that register for the amnesty. If practices are confident in their payroll tax compliance, registration may add time and cost pressures. The specific information to be disclosed to RevenueSA and their capacity to offer timely guidance for corrective action by June 30, 2024, remain unclear.
RACGP has communicated with the SA GP community, announcing their plans to host webinars with RevenueSA team members. It is reported that this education will be delivered prior to 30 September 2023 to enable practices to make an informed decision about whether to apply for the amnesty. This educational initiative may prove to be RACGP's most significant achievement through its advocacy efforts.
The devil is always in the detail and making an informed decision is crucial. Given the complexity of payroll tax, we strongly advise GP practices to wait for the webinar education that has been promised by the RACGP then seek accounting and legal advice before decided whether to register for the amnesty.
It is important to note that the amnesty exclusively applies to general practices, but the rising threat posed by the cases prosecuted in NSW also impacts on specialist, dental and allied health practices.
Link to RACGP press release:
Link to RevenueSA release:
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Disclaimer
The information provided in this article does not constitute advice. The information is of a general nature only and does not take into account your individual financial situation. It should not be used, relied upon, or treated as a substitute for specific professional advice. We recommend that you contact Brentnalls SA before making any decision to discuss your particular requirements or circumstances.
