Payroll Tax Rebates for Bulk Billing Medical Practices

New changes to the Payroll Tax Act 2007 No 21on 24 June 2024 will positively impact medical practices which employ or appoint doctors who predominantly bulk bill patients (80% metropolitan Sydney, 70% elsewhere). As a result, payroll tax exemptions/rebates will be available as follows:

(a) An exemption where payroll tax is unpaid and the wages are paid or payable before 4 September 2024; and

(b) a rebate of payroll tax payable for relevant general practitioner wages paid or payable on or after 4 September 2024.

Relevant Practitioner Wages include contractors who fall within the ‘relevant contract’ provision of the Act that make payroll tax payable for independent contractors. The impact of these provisions are to reduce the payroll tax liabilities of medical practices that largely bulk bill.