The Queensland Payroll Tax Exemption for GPs: What You Need to Know

After a long wait, the Queensland Payroll Tax Exemption for general practitioners (GPs) has finally arrived. At time of publication, GPs – contracted or employed – are officially exempt from payroll tax. This has been implemented via an administrative arrangement; Public Ruling PTAQ014.1.1 which was issued 6 December 2024.

So, what does this mean for your medical practice? Let’s break it down.

Key takeaways from the public ruling.

The ruling confirms several important points:

•  The exemption applies to all GPs, with clear definitions provided in the ruling.
• It includes doctors on accredited general practice pathways.
• The exemption is valid whether GP services are provided in-clinic or via telehealth.
• The effective date is 1 December 2024, meaning practices no longer need to pay payroll tax on GP-related payments from this date forward.

This is a landmark decision, making Queensland the first state to achieve this outcome for GPs.

What if I am registered and paying Payroll Tax?

If your practice has been paying payroll tax for GPs, here’s what changes:

• From 1 December 2024, payroll tax no longer applies to taxable wages paid to GPs.
• If you lodge payroll tax half-yearly, you may have overpaid payroll tax year-to-date. A refund will be issued upon lodging your Annual Return in July 2025.

What if I previously registered for the Amnesty?

If you applied for the Queensland Payroll Tax Amnesty, there’s no further action required. Queensland Revenue Office has already sent confirmation in early December 2024, and your amnesty obligations have been completed.

Payroll Tax registration and thresholds.

Even with the GP exemption, it’s important to keep up with payroll tax registration requirements. A business must register for payroll tax if group taxable wages exceed $25,000 per week – even if the total is below the annual $1.3 million threshold.

With data-matching via Single Touch Payroll, Queensland Revenue is monitoring payroll tax compliance in real time. Businesses exceeding the registration threshold can expect a ‘Prompt from the Commissioner’ notification.

Payroll Tax Exemption is a win, but what’s next?

While the GP payroll tax exemption is a welcome relief, there are still financial and compliance concerns to keep in mind:

✔ Ensure agreements align with business operations: Your documentation should accurately reflect how your practice operates.

✔ Review exemptions for non-GP specialists: Not all medical professionals qualify for the exemption. Understand arrangements you have in place and the relevant exemption so you are clear on your payroll tax exposure and obligations.

✔ Stay on top of your practice’s financial health: Have you reviewed your budget recently? With rising costs, regular financial modelling and cash flow analysis can help prevent financial surprises.

✔ Superannuation compliance matters: If you pay contractors hourly, you may have Superannuation Guarantee (SG) exposure. Late superannuation payments are strictly monitored by the ATO – make sure payments are processed on time. 

Navigating payroll tax, financial compliance, and practice management can be a lot on your own. Our team at Cutcher & Neale are here to help. Contact us today for a complimentary consultation at 1800 988 522 or medical@cutcher.com.au.