As the year comes to a close, Queensland medical practices have been given a gift. The long battle for GP payroll tax exemptions finally has an ending.
On 12 December 2024, newly appointed Queensland Treasurer David Janetzki fulfilled his party’s election promises and announced that GPs are now exempt from payroll tax.
The change is effective immediately and marks a turning point after years of intense advocacy and uncertainty.
What the exemption means
With the Treasurer’s announcement, clarity has finally been delivered. Wages paid or payable by a medical practice to a GP or GP Registrar will no longer be subject to payroll tax; this also covers contracted GPs.
This decision ensures that GPs can continue providing essential care to patients without the fear of unsustainable tax burdens.
For practices that registered for the amnesty; you are covered until 30 November 2024 with the exemption taking effect from 1 December 2024. We understand no further information needs to be submitted to satisfy the amnesty requirements.
Another important thing to note; non-GP specialists are not provided for in this exemption. Instead, non-GP specialists must still rely on their interactions with patients and flow of funds.
A hard-fought victory
This exemption follows relentless efforts by AMA Queensland, who have been championing the cause since 2021. Back then, many practices were blindsided by unexpected, backdated payroll tax bills that threatened their very survival. These practices were faced with a tough choice: either pass the additional costs onto their patients or close their doors entirely.
The previous Labor government responded by introducing an amnesty period. While this provided some relief, it left many practice owners unsure of what would happen once the amnesty ended.
The looming uncertainty has been a constant source of stress for GPs, practice managers, and their patients alike.
What should you do now?
With this new clarity, if you’re a practice owner or GP, here are some things you should consider doing:
- Review your business model: In light of this new ruling ensure your compliance aligns with these updates.
- Focus on your cashflow and efficiencies: Don’t lose sight of your practice’s operations.
- Understand your exposure: Check your arrangements with non-GP specialists to make sure you satisfy the exemptions.
- Seek professional advice: It’s important to understand how the exemption applies to your specific practice.
We are here to help you adapt to this exemption and what it means for you. If you have any questions or need further assistance, don’t hesitate to reach out to our team.
Nicole Brown has more than 23 years of experience in accounting and financial services, specialising in medical professionals and niche industries. Personalised, client-focused, and trusted, she builds strong client relationships, offers clear guidance, and ensures strategies align with long-term financial objectives.
