The classification of a locum/associate practitioner as a common law employee or an independent contractor is not only relevant when determining a practice’s potential payroll tax obligations.
As you are probably aware, the recent payroll tax cases in NSW and Victoria have demonstrated the Office of State Revenue’s renewed vigour to try to undo well accepted medical practice structures, none more so than in the Optical Superstore case where recently the Victorian Court of Appeal found payments made to Optometrists by the Optical Super Store were subject to payroll tax.
No-one wants to have Medicare undertake an audit of their practice’s billing processes. As demand on healthcare rises, Medicare compliance is a high priority for the Department of Health. It is essential that practices understand how to comply and to regularly review the systems in their practice.
From 1 July 2019 practices that were previously classified as RRMA 1-7 (Rural, Remote & Metropolitan Area) are now classified as MMM 1-7 (Modified Monash Model).
We know…..not another article encouraging you to spend more money on your kids, yes you have already covered private school fees, now double degrees at university and yet we want you to spend more… though it could be in a tax deductible manner.