The Victorian and South Australian Governments recently announced updated information on how they intend to treat payments made to General Practitioners (GPs) for payroll tax assessment purposes. What We Know - Victorian Announcement A 12-month exemption up to 30 June 2025 for General Practices who are yet to begin paying payroll tax on payments to GPs. An exemption for these practices from retrospective assessment on payments to GPs up to 30 June 2024. An exemption for payments to GPs that relate to bulk billed consultations from 1 July 2025. What We Know – South Australian Announcement An exemption for payments to GPs that relate to bulk billed consultations from 1 July 2024. The exemption will apply to all GP practices, regardless of whether their GPs are engaged as employees or deemed contractors. Key Points - Our Understanding Only payments to contractors and employee GPs related to fully bulk-billed consultations will be considered exempt. Consultations that are not completely bulk billed are not considered exempt – we believe this will apply to the whole consultation fee not only the private gap payment. It is unclear in Victoria at this stage as to how private and non-bulk billed payments that are paid directly from the patient to the GP’s own bank account will be treated – we advise a cautious approach and suggest that these will remain taxable. Both State's approaches differ from the current guidance in Queensland where, generally, payments that flow from patients to the GP directly will not be considered taxable wages. How to Estimate Exposure – (based on the South Australian method) The calculation for payroll tax liability is not straightforward and involves various thresholds and reducing offsets, however, a simple methodology to estimate your potential payroll tax exposure is below: Calculate Payments to GPs Calculate monthly patient income (per doctor) Exclude GPs that fit one of the exempt classifications Multiply the patient income amount by the relevant “payment” percentage (calculated as 1 -  Service Fee %) e.g. 1- 30% = 70% “payment” percentage Calculate Exemption Percentage Calculate the total number of bulk billed items as a percentage of total number of all billed items Apply Exemption Percentage Apply the exemption percentage calculated to the payments to GPs Apply Payroll Tax Rate Multiply the above amount by the relevant current payroll tax rate in your state Victoria – 4.85% Victoria Regional – 1.2125% South Australia – 4.95% Result The result will approximate your estimated monthly payroll tax liability in relation to GP payments *Note that we are yet to receive full information on the implementation of the newly announced exemptions. The above methodology is for informational purposes only. For an accurate calculation involving your specific circumstances, state threshold and rates please reach out to your accountant, or to us at GrowthMD. Tools to Assist Information relating to non-bulk billed GP consultations can be obtained from your Practice Management System. For those practices currently using Cubiko , you will easily be able to access the information required to calculate your payroll tax exposure directly from your Cubiko dashboards. Important Considerations & Actions Commence planning for your practice’s future. We suggest modelling the financial benefits of bulk billing (with the associated benefit of the exemption), versus private billing (where GPs can set commensurate, viable fees for the care and service they provide). For many practices, these exemptions will not substantially impact their position on bulk billing or payroll tax moving forward. Remember that not all non-bulk billed payments to GPs will necessarily be taxable wages for payroll tax purposes. You will need to consider the structure of your practice, current agreements with GPs, the nature of your business operation and any relevant contractor exemptions that may apply. We greatly caution practices and GPs against making knee-jerk changes such as altered billing policies, restructures, banking arrangement changes etc without obtaining professional advice. It is imperative to understand all the information when it becomes available and once passed as law. This may not be for some time. How GPs are engaged with a practice or service entity not only impacts payroll tax exposure but also other areas such as superannuation and personal income taxation. Before making any changes to arrangements seek advice as to the wider taxation and employment landscape. How GrowthMD can assist We strongly encourage you to talk to your current accountant and legal adviser to obtain advice about how these changes may affect your practice. Alternatively, you can contact the team at GrowthMD to provide insights on these changes, along with other specialist advice for your practice.

Our specialisation in medical practices provides robust data to benchmark your medical practice effectively. We are excited to share the 2024 benchmarking insights revealed during our recent online event, exclusively for you and your medical practice. You are the first to witness this invaluable insider information, which includes: Measuring profit for medical practices Practical tips for setting accurate targets and budgets Key traits in profitable practices New benchmark data on practice running costs Don't miss out on gaining essential benchmarks and improving your practice's performance.

I had the opportunity to participate in the Digital Health Festival in Melbourne, and I'm excited to share insights and takeaways from the event. It is the only place where the entire health ecosystem meets with a focus on technology as a tool for enhanced patient outcomes and productivity. Recognised as Australia's premier health technology event, the Digital Health Festival attracts over 6,000 health leaders. It provides a dynamic platform for the exchange of innovative ideas and the formation of strategic partnerships. This collaborative group of health leaders meet to spark new ideas, form new partnerships, and, together, change the future of healthcare. The prevailing theme revolved around Generative AI. The applications of Generative AI spanned across various facets of healthcare, from patient segmentation to compassionate communication, making a substantial impact on the industry and its workflow. A particular highlight for me was witnessing a powerful affirmation from Danielle Bancroft of BP Software that "technology is not the problem." This resonated deeply with my own experiences, shunning the misconception that technology is the primary obstacle in healthcare advancements. Beneath the surface of the festival's content, I found invaluable connections and conversations with industry professionals, which underscored the true essence of the event - networking and sharing real-life experiences in healthcare. With the promise of new insights and strategies to bring back, I am eager to attend the Digital Health Festival again next year and share the learnings with both you and my clients over the coming months.

Well, it is that time of year again when you, our clients, get to leverage our depth of knowledge on all things tax for healthcare professionals. In this video, I give you some critical advice to ensure we give you the best advice for your situation.

The Touchstone General Practice Industry Report draws from benchmarking data spanning 811 practices across Australia, offering a comprehensive exploration of industry trends, including general practice benchmarks. Analysing factors like practice performance, billing methods, and patient experience, the report provides invaluable insights into the standards and performance metrics within the general practice landscape. Download the report below 👇. Cubiko has produced the 2023 Touchstone General Practice Industry Report, prepared for general informational purposes only and not intended to be relied upon as accounting, tax, or other professional advice.

In the first months of 2024, we have seen a sharp increase in demand for our advice and implementation services from practices wanting to take action and minimise payroll tax exposure risk. In this video, I talk about the latest QLD ruling (Feb 2024) and give an overview of the relief offered by various Australian states and territories. Is your practice ready to take action on payroll tax compliance and risk minimisation? If so, please get in touch with us to schedule a discovery meeting.

Many new clients to GrowthMD have made the change because they seek a more proactive and rewarding relationship with their accountant. What does a proactive relationship with your accountant look like? In this video, I take you step by step through our End of Financial Year client advice process - so you can see what a proactive relationship looks like and how it can benefit you and your business.

Common tax and accounting issues for the health industry that we commonly solve at GrowthMD: Late lodgments and poor record keeping - there is no excuse for this, and it is so easy to overcome! Non-compliance with tax legislation - medical professionals and businesses have extra considerations that many accountants overlook Related party loan issues - save yourself the heartache (and tax cost) and seek this out sooner rather than later Missing or incorrect deductions - nothing is worse than missing out on deductions because of poor planning or education. GrowthMD is a medical specialist accounting firm dedicated to working with medical practices and practitioners. We would love to talk to you about helping you with your taxes and lodgments in the future.

This festive season, we did something different at GrowthMD for our valued clients. 'Making a difference' and 'Well-being' are two of our core values, so we asked you to select a worthy cause that we could donate to on your behalf. Because of you, 744 impacts have been paid forward, and 744 smiles have been created around the world. Make sure to spread smiles; if you missed our email last year, please click here to select your gift from us. If you know someone needing a specialist accounting firm and would benefit from working with us at GrowthMD, we would love you to send us their details. To thank you, we will make an extra giving to your preferred charity.

I was featured in the latest HealthCert podcast with its founder, Paul Elmslie, on Australia's complex payroll tax implications for Doctors. Paul and I discuss: Some background on payroll tax, how it is calculated and who pays it. Why payroll tax is currently a hot topic. How payroll tax is impacting general practices in Australia. Potential consequences if practices don't get their affairs in order around payroll tax.