Update: Medical centres and payroll tax

In our previous article about increased audits on payroll taxes applied to contractors, we discussed how relevant contractor provisions deem contractors to be employees for payroll tax purposes unless an exemption applies. Under these provisions, amounts paid or payable by a principal to a contractor are treated as wages in relation to the work or services provided under the contract. Payroll tax is therefore payable.

The relevant contractor provisions are now being applied by revenue offices to medical centres. Similar rulings were issued last year by revenue offices in Queensland, Victoria, New South Wales and South Australia, supported by case law, which state that unless an exemption applies, the relevant contractor provisions will apply in the following circumstances: