Revenue SA has announced the introduction of a temporary six-year payroll tax amnesty for salaries paid to contracted General Practitioners across South Australia, backdated to 1 July 2018 and applicable until 30 June 2024.
According to Revenue SA, medical practices are liable to pay payroll tax on payments made to contracted GPs unless a contractor exception applies.
Its website states there is a potential lack of awareness of the payroll tax treatment of contractors among GPs.
Recent court rulings interstate found contracted GPs are employees for payroll tax purposes and this may not have been considered by the sector, leading to payroll tax underpayment.
It is to be stressed that this amnesty is being used to incentivise Medical Practices to become compliant with their payroll tax obligations and can anticipate scrutiny in the future.
Importantly, an amnesty is not an exemption from payroll tax altogether. Under such circumstances, liability for tax still exists, but certain amounts relating to the tax may not actually have to be paid.
Eligible medical practices must have employed a GP as a contractor, with that GP registered with the Medical Board of Australia.
Medical practices must register to be a part of the program through Revenue SA by 30 September 2023.
