Payroll tax update – current landscape

Background

Following the conclusion of the Federal election, the State governments have largely reached a settled position in relation to the applicability of payroll tax for medical practitioners and any relevant exemptions which may apply in each jurisdiction.

This article will set out the current exemptions applicable in each state and territory.

a) Queensland: effective from 1 December 2024, the Queensland Government introduced a blanket exemption for any wages paid or payable to general practitioners (whether employed or contracted), and those payments are not subject to payroll tax. This exemption excludes all payments made to a general practitioner from payroll tax liability and applies irrespective of whether the general practitioner bulk bills or privately bills patients.