Whilst I was on vacation this week I took some time to reread the changes to the Health and Medicare compliance measures which began on 1st July 2018. While reading through the material I was struck by the similarity between the ATO compliance and debt program and these new measures aimed at Health Practitioners. I found myself wondering if the policymakers in the Health Department may have taken their lead from their government colleagues at the ATO when forming these legislation changes. Here is a brief look at the similarities between the Department of Health and the ATO compliance and debt program.  (The Health Legislation Amendment (Improved Medicare Compliance and Other Measures) Bill 2018 came into effect on 1st July 2018). Applicable to Health Practitioners (can include GPs, medical specialists, dentists, pharmacists and allied health providers)Applicable to Australian Taxpayers Garnishee Powers Garnishee notices can be issued in relation to debts, allowing the recovery of funds from a provider’s bank account. Garnishee notices can be issued to 3rd parties such as banks or employers to recover tax debts. Record Keeping Practitioners are required to keep claim and supporting records for at least two years (and up to four years for some dental and other programs). Taxpayers are required to keep records for up to 5 years Substantiation Practitioners must substantiate item numbers claimed if requested by the Department (Notice to Produce Documents). Taxpayers must substantiate their claims if requested by the ATO.PenaltiesAdministrative penalties are applied to debts arising from a failure to substantiate claims. These can be reduced if t Shared Debt Recovery Scheme (SDRS) – from 1 July 2019 As we know, at present an individual medical practitioner is solely responsible for a Medicare debt (except in cases of fraud by associated parties). The application of the Shared Debt Recovery Scheme from 1st July 2019 provides that, where contractual or other arrangements exist between a practitioner and an employer or corporate entity, both may be liable for the repayment of a debt arising from a false or misleading claim. Of course, one of the outcomes of this scheme is that health practices and corporations should be proactive in taking a higher level of responsibility and interest in billing accuracy, as they may now share some responsibility for liability with the health practitioner.  It could be viewed that one of the drivers behind the SDRS is for health practices, employers and corporate entities to help monitor and police compliance by the individual provider. To me, this is reminiscent of the ATO’s approach with ABN withholding provisions where the contracting party is used in a compliance measure to promote compliance at an individual contractor level (such as a business paying a contract tradesman to complete repair work on their premises). Measures such as the above, where compliance is aided by associated and often unrelated parties have been ATO policy for several years now and continue to evolve and expand. What’s next? The Federal budget delivered in May 2018 allocated a massive $130 million in new funding for ATO compliance activities. The same budget also promised funding, although much less, into compliance and debt recovery measures to target investigations into fraud, inappropriate billing practices and incorrect claiming under the Medicare system. Personally, I have seen a flurry of activity in the ATO compliance and review space. The increased activity includes expense claim reviews and the expansion of “dob in a tax cheat” type telephone and online systems. Tax agents who administer many claims on behalf of taxpayers are also in the firing line for increased compliance activity. Is it only a matter of time before we see a similar flurry of activity in Medicare compliance, including the wider promotion of anonymous reporting measures for fraudulent claiming? Is there the potential that billing agents and practice management staff may one day become subject to a compliance scheme such as the Tax Agents Board which monitors tax practitioners (including competence criteria and registration to be able to make a claim on a provider’s behalf)? Time will tell, but the increased compliance in Health and Medicare is an interesting space reminiscent (to me) of the ATO rulebook.

Some see their role as an accountant in a narrow frame - compute tax, lodge return, claim GST. Repeat. I like to view our contribution on a larger scale and with purpose. In my world, I work with many medical practices. Through this work, I believe I can make an impact. I can help your business be more profitable and cash flow positive. I can reduce your financial stress. I can give you the tools to free up your time and your team’s time. Which means you can focus on patients, or you can focus on family and friends. Your health and relationships improve. Maybe you can go on that holiday you have been putting off. With more time, your team is happier. Maybe the family is more comfortable. A happy team can focus on satisfied patients. More satisfied patients are more likely to return - impacting their health outcomes and your business success. Which means you can give back to your community or those in need. You can keep people employed and financially independent. Some may find this ridiculous or too touchy-feely for accountants. I think it is what we should all aspire also. As skilled and passionate accountants, we can make differences that flow on to significant impacts. Let's talk about how GrowthMD can help you book a discovery call. https://calendly.com/kellychard/15

I talk through the process of why you may want to change your accounting firm and how to select the right accounting firm for your medical or dental practice. Like to discuss how GrowthMD can help you? Book a discovery call with us.

I walk through all the strategies and options for Dental Practitioners. ✅ JobKeeper wage subsidy eligibility ✅ Accessing the Cash Boost of $20,000 to $100,0000 ✅ Stimulus differences for those operating through companies, trusts or as sole traders ✅ Other stimulus measures including superannuation access & ATO deferrals ✅ Importance of cash flow planning over the months ahead Book a time to start maximising your stimulus benefit.

GrowthMD urges all General Practice owners and managers to spend quality strategic time on their business. Now is the crucial time to have complete visibility into your changing practice operations. Along with traditional financial data, some areas to be actively managing are: ✅ Revenue and appointments per hour ✅ High care groups - appointment needs, scheduling and recalls ✅ Your changing volume of Telehealth items ✅ Doctor availability and appointment coverage ✅ Schedule based on demographics and isolation constraints GrowthMD is proud to work with Cubiko and their new release - Cubiko Assist. Cubiko Assist is an intelligent free tool available to help GP practices remain profitable and sustainable during this COVID-19 time of challenge. Please register your interest below or book a meeting with our team to discuss how the dashboard can be implemented as part of an overall smart management strategy. Register Here

Attention Health Practices. Does your practice work with practitioners via a service fee model? Remember that when calculating a 30% decline in turnover you will be considering: ✅Service fee income 🛑Not total doctor’s own patient billing Other important things of note with eligibility: PIP and incentive income is generally not included in turnover for the purposes of JobKeeper eligibility. Practices will have other income to include in their turnover test - Registrar income, rent etc. Complete your review of eligibility carefully and with a great accountant to help. Final legislation details coming next week.

Today Prime Minister Scott Morrison announced the JobKeeper payment, designed to keep employees connected to employers during this health and economic time of crisis. The JobKeeper payments are administered via employers through the normal payroll process, not via Centrelink. This announcement still requires legislation to be enacted, however, we do have information to share as at 30 March 2020. JobKeeper Payment Applies to: Eligible employers and sole traders Eligible Businesses: Those currently experiencing at least a 30% decline in turnover (relative to a comparable period last year) Amount of payment: $1,500 per fortnight per eligible employee (or eligible sole trader) for six months Eligible employees: Full or permanent part-time staff, the casual staff you have employed for a minimum of 12 months, provided they were employed on 1 March 2020. Employees recently stood down may also be eligible. Think you may be eligible for a JobKeeper Payment? Register a phone call with our team here: https://calendly.com/growthmd/15 Subscribe to the ATO alerts: https://www.ato.gov.au/Job-keeper-payment/ As always our team are here to support you during this time.

Health businesses are busy gearing up for operational challenges in consulting with patients over the coming months. Practices need to also plan for business disruption within their internal workforce. What tools should can implemented now to ensure that financial and administrative tasks can continue efficiently? Our GrowthMD clients regularly work with: Tanda: #1 Workforce Success Platform Xero Practice Protect Zoom Video Communications Slack Receipt Bank Need help? Book a discovery meeting here.

Key Learning: ✅What is Personal Services Income? ✅Can I pay a salary to my spouse or family member? ✅Can my trust distribute income to my spouse and kids to save tax? ✅What are the ATO audit risk areas? Book a discovery call with Kelly.

It doesn't matter how long you have been in business; there can always be a crisis. Business is rarely "set and forget". In the early years, the crisis is often viability and cash flow. In the maturity phase, the crisis may be exit and succession. A skilled business accountant will aim to smooth the crisis points at, and between each stage, done with collaboration and planning. Seeing your accountant once a year at tax time won't cut the mustard when it comes to navigating a small business. No matter what your stage in business be sure those lines of communication with your accountant are happening. Check out my previous blog on tax strategy vs business strategy.