Payroll tax information for patients

Following the dismissal of the Thomas and Naaz case by the NSW Court of Appeal in March 2023, state and territory governments will soon be imposing a new interpretation of payroll tax on the earnings of independent general practitioners (GPs). This may affect you, your family, and your practice.

After many years of Medicare being chronically underfunded, the application of retrospective payroll tax liabilities, occurring in some states may push many general practices to the brink. A recent survey of GPs and practice owners found:  

• Nearly one in five practices say they will be forced to close.  

• 78% of practices will have no option but to raise fees, meaning patients will pay more for every GP consult.