In news announced recently, the current Queensland Labor Government has announced it will match the Liberals commitment to scrap the proposed legislation that was due to commence 1 July 2025, after the current amnesty ends.
This means no matter which party wins the state election on 26 October, GPs will not be subject to payroll tax.
After widespread pressure from governing bodies such as RACGP and AMA QLD, this outcome is welcome news for many GPs and practices across the state.
Last week, the Queensland Liberal National Party formalised its long-standing promise to remove payroll tax on contractor GPs by passing an amendment to the Payroll Tax Act 1971 making GPs a special category. While the Labor Government has not confirmed how it will enact the change, it will be under a similar mechanism.
The news could also mean other states follow suit. Last year, the Queensland government became the first in Australia to announce an amnesty for eligible medical centres. This means that GPs were not required to pay payroll tax up to 30 June 2025, and for the previous five years. However, the Queensland Treasurer has confirmed, that if elected, Labor will legislate to automatically exclude GPs from the tax.
The threat of the tax has been so impactful that medical practices have spent significant time changing their systems and procedures, and some doctors have considered moving to better conditions.
While many practices may have invested a lot of time in seeking out legal and accounting advice, the announcements are very reassuring to the industry. It is also a welcome relief for patients, as general practices would have had no choice but to pass this new tax on to patients.
For More Information
If you would like more information on payroll tax, please contact an Archer Gowland Redshaw adviser on (07) 3002 2699 | info@agredshaw.com.au
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