Australia: Guidance on payroll tax exemption for general practitioners in medical centers (New South Wales)

The government of New South Wales (NSW) issued a regulation prescribing the area that comprises “metropolitan Sydney” for purposes of the state’s payroll tax exemption for general practitioners (GP) in medical centers.

The NSW revenue office also released a Commissioner's practice note that outlines the exemption and explains the amendments made to the state’s Payroll Tax Act 2007 by the Revenue Legislation Amendment Act 2024, which provides:

• An exemption for any unpaid payroll tax that was payable on wages paid or payable to a relevant GP prior to September 4, 2024
• A rebate for payroll tax on wages paid or payable to GP contractors on or after September 4, 2024, when certain conditions are met

According to an accompanying release from the NSW government, GP clinics in metropolitan Sydney must bulk-bill at least 80% of their patient services to be eligible for the ongoing payroll tax rebates, whereas a lower bulk-billing rate threshold of 70% applies to GP clinics outside of metropolitan Sydney.

The practice note also states that the rebate and exemption only apply to contractor GP services and does not extend to GPs engaged as employees and other staff such as nurses, reception, administration staff, pathology and allied health services.