AMA VICDOC Winter 2025 - Magazine - Page 85
PAY RO L L TA X
hold differing interpretations of the law.
Ultimately, the correct application of these
provisions remains uncertain and may
require judicial determination or further
legislative clarification.
In the meantime, the SRO has advised
that all Victorian GP businesses not
currently registered for payroll tax should
assess their Australian wages from
2020–21 onwards. Practices that exceeded
the relevant payroll tax threshold in any
year- or expect to in 2025–26 — are
expected to register via the SRO’s
Payroll Tax Express system.
Given the complexity and variability
of practice arrangements — and with
payroll tax obligations on contractor
payments to take clearer effect from 1 July
2025 — practices should ensure they have
obtained tailored professional advice.
AMA Victoria has consistently highlighted
the importance of early planning.
Our accounting and taxation partner,
the Bongiorno Group, has extensive
experience supporting medical practices.
Members seeking further guidance may
wish to contact them directly:
AMAV — Bongiorno Group.
SPECIALIST PRACTICES
-
While general practice has been the focal
point of recent reforms, public attention,
and ongoing speculation, AMA Victoria
recognises that the payroll tax framework
may also affect specialist medical practices
that engage doctors as contractors. In
many cases, specialist practices may face
a lower risk of liability due to existing
legislative exemptions — such as the
“services to the public generally” testwhich may be more readily satisfied in the
case of specialist contractors who also
regularly work in the public health system.
However, exemption eligibility depends
heavily on specific contractual and business
arrangements. As such, specialist practices
are not necessarily out of scope, and
some may still be caught by the current
interpretation of payroll tax law.
AMA Victoria has repeatedly sought
clarity from the SRO on how these
provisions apply to commonplace specialist
arrangements more broadly. To date, the
SRO has not issued clear guidance on this
point. In the absence of a definitive position,
we strongly encourage specialist practices
to obtain tailored legal or accounting advice
to assess their individual circumstances and
risk exposure.
VI CD O C WI NTER 2025
85
