2025 payroll tax exemptions for General Practitioners: What you need to know

As one of Melbourne’s leading suburban accounting and tax consultancy firms, it’s crucial for our clients that we stay on top of any changes in tax law. In October 2023, we highlighted significant case law developments that may expand payroll tax obligations for medical practices using contractor medical professionals. For more detailed insights, refer to our article, Navigating Payroll Tax Liability: Implications for Medical Practices. 

Recently, the landscape has shifted once more, so we’re bringing you a new development.

Payroll tax relief measures for GPs in Victoria

On 22 May 2024, the Treasurer of Victoria announced a short-term relief in payroll tax for GPs. Notably, General Practitioner practices in Victoria will benefit from a payroll tax exemption on payments to GP contractors, applicable until 30 June 2025. It is important to note that these interim changes—lasting until 30 June 2025—only relate to payments made to contractors, and do not apply to common law employees.

Then, starting 1 July 2025, General Practitioners handling payments to both GP contractors and employees will be exempt from payroll tax liabilities if the General Practice primarily offers bulk-billed consultations. This exemption is expected to be based on the proportion of bulk billed consultations relative to total consultations, similar to policies recently introduced in South Australia.

GP payroll tax changes overlook allied health

If you’re from a medical practice with GPs and other medical doctors on the payroll, these changes could impact your payroll tax liability. However, these proposed changes, as announced, will only impact practices that employ credentialed medical doctors. It appears that these modifications will not apply to allied health professionals, such as physiotherapists, psychologists, dentists, and chiropractors.

If you’re not sure how this applies to you, or if your practice will qualify with your mix of medical services, LDB can help. With years of experience and up-to-date expertise, our team of business tax accountants and advisors can help you effectively plan, and ensure you’re taking advantage of any changes in taxation that apply to you. 

Let LDB help with your financial health

Whether you’re seeking assistance with tax returns and payroll management, or more nuanced tax planning strategies, our team of dedicated tax professionals will provide the guidance you need to ensure compliance while maximising your financial outcomes.

For additional information or to speak with a CPA tax advisor please do not hesitate to contact us on (03) 9875 2900 and ask to speak with the tax team.