Recent changes to payroll tax laws have brought increased scrutiny to medical practices, especially regarding payments to contractor GPs. Historically, many practices assumed exemptions due to their structure. However, judicial rulings, like the Optical Superstore case, and a stricter Victorian State Revenue Office (SRO) interpretation have clarified and enforced obligations.

Victoria announced temporary relief for retrospective liabilities and partial exemptions for fully bulk-billed services starting 1 July 2025. Practices now face challenges navigating these rules, especially for non-bulk-billed services. The AMA Victoria has been advocating for clarity and fairness, but practices must act quickly, seek professional advice, and prepare for these changes.

State Taxation Further Amendment Bill 2024 (https://www.legislation.vic.gov.au/bills/state-taxation-further-amendment-bill-2024)  passed the Victorian Parliament on Thursday 28 November, 2024.

Lewis Horton, Senior Policy Adviser with AMA Victoria, discusses the ramifications with Jim Tsirtsakis, Director at the Bongiorno Group,

The Money Doctors is proudly brought to you by leading financial services organisation the Bongiorno Group, the preferred tax and accounting partner for the Australian Medical Association Victoria and the Australian Dental Association Victorian Branch.

For more information, please call 03 9863 3111 or visit https://bongiorno.com.au/ 

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