Australia: Introduction of temporary payroll tax exemption on general practices (Australian Capital Territory)

Introduction of a temporary payroll tax exemption on general practices, complementing Federal government bulk billing incentives

Introduction of temporary payroll tax exemption on general practices

The Australian Capital Territory (ACT) government announced that it will be introducing a temporary payroll tax exemption on general practice medical centres, complementing recently announced Federal government bulk billing incentives.

According to the ACT government, it has been engaging with general practices and their representative organisations, to assess the implication of payroll tax on general practices that are above the $2 million* tax free threshold.

Following the review, the ACT government says that several steps are being taken to address payroll tax concerns for affected practices, including:

  • Waiving payroll tax liabilities until 30 June 2023 for medical practices that have not previously paid payroll tax on general practice payments, to ensure general practice businesses are not subject to retrospective assessments
  • Providing further time for general practices that support the community with reasonable levels of bulk billing to review their taxation arrangements, seek advice, and implement necessary changes to provide future compliance with their payroll tax obligations
  • A payroll tax exemption on general practice payments until 30 June 2025 for healthcare businesses making payments to general practices that:
    • Are bulk billing 65% of all patients
    • Have registered for MyMedicare
    • Register with the ACT Revenue Office by 29 February 2024

*$=Australian dollar


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