Payroll tax information for practice owners and GPs

States and territories are affected by a new application of payroll tax that is treating contractor GPs as employees for tax purposes. 


Advocacy > Patient tax

Payroll tax

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 payroll tax on the earnings of tenant GPs. This may affect you 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 be have not option but to raise fees, meaning patients will pay more for every GP consult.  

The RACGP is seeking a commitment from all state and territory governments to not impose retrospective payroll tax on contractor GPs and to implement a grace period so that practices can prepare for any changes as required.

RACGP advocacy

The RACGP knows payroll tax is a concern for many members. And we’re fighting it. But we need your help.

We’re asking all our members to complete this short survey.

Your survey answers will give us valuable data, which will inform our advocacy on this issue, including lobbying politicians. This in turn will help us get the best solution for practice owners and GPs on payroll tax.

Rest assured – the survey is completely anonymous.

The RACGP has been at the forefront of advocacy to secure an amnesty on payroll tax liabilities and a commitment not to impose retrospective payroll tax liability from state and territory governments.

We are continuing to advocate for these urgent reforms and for all levels of government to work together on a long-term plan to ensure general practice in Australia continues to deliver equitable and high-quality healthcare.

Choose the state/territory you live in to find contact details of your local MP


Click a state to visit that state's page for further information.

New South Wales

The RACGP secured a 12-month payroll amnesty for practices in New South Wales following successful discussions with the Minister for Finance, Courtney Houssos. The amnesty is a temporary reprieve for NSW practices and will allow for further consultation with the RACGP and AMA. 

Following the announcement to pause payroll tax audits, the NSW Government also announced a new Special Commission of Inquiry into Healthcare Funding. The RACGP applauds this show of support.

The RACGP is currently in discussions with the NSW State Revenue Office to collaborate on a webinar to provide further information and guidance to assist members. Further information will be provided here as well in the President’s Update.


Following a number of practices coming forward in Victoria, the RACGP continues to contact Premier Daniel Andrews calling for him to reconsider his current position and to follow the lead of the NSW, Queensland, SA, WA and ACT governments and impose a temporary payroll tax amnesty.

A GP Summit took place on Wednesday 30 August 2023, supported by the State Opposition, with many concerned GPs and practice owners in attendance.


Following successful discussions with the RACGP, the Queensland Government announced on 14 September 2023 that a QRO ruling will make clear that under normal business arrangements, patients’ fees including Medicare benefits and any out-of-pocket fees, when they are paid directly by a patient to a GP for that GP’s services, will not be subject to payroll tax.

The new public ruling has now been released. RACGP members are encouraged to talk to their legal and tax advisors.

The Government has also extended the expression of interest period for the amnesty from 29 September to Friday 10 November 2023 – it’s important that practices sign up.

QRO Amnesty FAQs: 
We have compiled and submitted RACGP members’ questions on the payroll tax amnesty to the QRO and their responses are available here on our Queensland FAQs page

South Australia

The RACGP secured a payroll tax amnesty for practices in South Australia until June 2024 following successful discussions with the South Australian government.

RevenueSA in collaboration with RACGP has held a series of educational payroll tax webinars for GPs in SA and will be holding additional webinars in the coming months.

Amnesty deadline reminder:
For all RACGP members in South Australia, please remember that registrations for the South Australian Government's payroll tax amnesty must be submitted by 30th September 2023 via the RevenueSA website.

Western Australia

The RACGP secured confirmation from Treasurer Rita Saffioti in July 2023 that there would be no change to existing collections of payroll tax on general practices.


Discussions recommenced in August 2023 with new Health Minister Guy Barnett. 

Northern Territory

Discussions with the NT government has commenced with Health Minister Natasha Fyles.

Australian Capital Territory

The ACT government announced on 26 August 2023 a two-year payroll tax exemption (until 30 June 2025) but only for practices that bulk bill 65% of their patients.

The RACGP is intensifying advocacy efforts to the ACT government to reconsider its position and have been involved in a series of discussions with other GP groups and peak bodies.


How to get involved

Find out what Practice owners and GPs can do to get involved

  Find out how you can help 

Advocacy and media releases

Choose your state/territory for RACGP payroll tax advocacy and available resources

Frequently asked questions

Answers to frequently asked questions

  Visit the FAQs page 

Self care resources

The GP Support Program

The GP Support Program is a free service offered by the RACGP in line with the college's commitment to foster a culture of self care.

Find out more 

Self-care and mental health resources

The RACGP encourages all GPs to take care of their own physical, mental, emotional and social health and seek support when required. 

find out more   

Catch up on the payroll tax webinar

If you weren’t able to attend the February information webinar about tenant GPs and payroll tax, you can now catch up at your leisure.

Hear from RACGP CEO Paul Wappett, President Dr Nicole Higgins, Vice-President Dr Bruce Willett and representatives from accounting firm William Buck on the implications of recent changes and what that means for practices across Australia.

Watch the webinar   

Open letter to NSW Premier Dominic Perrottet

On 1 February, the RACGP placed full-page ads in The Sydney Morning Herald and The Daily Telegraph, featuring an open letter addressed to NSW Premier Dominic Perrottet.

To highlight the national significance of payroll tax, which affects all states and territories, and ahead of the upcoming NSW elections, the ads called for action by the NSW Government to exempt general practice earnings from payroll tax.

read the ad's full text here