Specialists and payroll tax

• The amnesty for GP specialists was announced by the Premier following National Cabinet and after AMA Queensland raised the alarm on behalf of several GP practices receiving multi-million dollar liability notices.
• AMA Queensland continues to advocate for all medical businesses to be spared retrospective liability to give them time to adjust their structures and practices in line with the QRO’s ruling.
• AMA Queensland has not had any specialist practices advise they have been audited or found liable for payroll tax. We urge any practices audited or found liable to contact us immediately.

Visiting Medical Officers (VMOs) and private hospital specialists

• The key exemption in the Payroll Tax Act 1971 (Qld) relevant to VMOs and private hospital specialists is Section 13B(2)(b)(iv) which applies to persons providing ‘services of that kind to the public generally'.
• This is generally understood to include private specialists that treat patients in private rooms and:
  • at public or private hospitals or 
  • other private practice clinics.
• Businesses must obtain independent advice specific to their circumstances to determine if they satisfy the terms of the exemption provision. Please also refer to Cutcher & Neale’s checklist for other key issues on which to seek professional advice.

Other non-GP specialists operating in private practice

Specialists that exclusively operate for a single practice or group may attract payroll tax if they 
reach the annual $1.3 million threshold.

All non-GP specialists and medical centres

• All non-GP specialists must:
  • consider their specific arrangements and the factors set out under section 7 of the QRO’s Public Ruling PTA021.3. Payroll tax exposure is lower where medical centres have an agreement in place with non-GP specialists that satisfies these factors 
  • ensure patient referrals are directed to the specialist and not the medical centre.
• All non-GP specialist medical centres using clearing accounts must consider their banking arrangements as a priority.
• Businesses must obtain independent advice specific to their circumstances to determine their payroll tax risk. Please also refer to Cutcher & Neale’s checklist for other key issues on which to seek professional advice.

Support from Cutcher & Neale

Our corporate partner, Cutcher & Neale, is also offering AMA Queensland non-GP specialist members a complimentary 45 min private discussion to help individual practices determine their payroll tax exposure. Cutcher & Neale's Payroll Tax Exposure Checklist may further assist medical businesses in understanding recent developments in payroll tax approaches. Please contact Cutcher & Neale for additional guidance on 1800 988 522 or email cnmail@cutcher.com.au.

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