Why Not Restructuring Your Medical Centre Is Going to Cost you Thousands
10 September 2023
On 11 August 2023, the State governments of NSW and Victoria broke their silence and issued rulings relating to payroll tax and medical centre arrangements.
Queensland and South Australia have released similar rulings.
This now brings four states together in their stance on payroll tax for medical centres although Western Australia confirmed last month that they were not aligning their legislation with the other states.
Historically, typical service fee arrangements where medical centres collect patient fees and then deduct a service fee to cover administration services (billing, room rental, staff costs, etc.), were considered by many to be outside the payroll tax regime. After the conclusion of the Thomas & Naaz and Optical Superstores cases which both found in favour of the State Revenue bodies, these practices have been highlighted as requiring change.
What this means for clinic owners is that if your arrangements resemble the normal facility fee setup, you may be liable for thousands in payroll taxes. See our video above for Salmin's take on what you should do to avoid any issues.
If you have any questions about your tax obligations, please feel free to reach out to us on 02 9188 0815.