31st August 2023 12:42
Victorian Legislative Council, Melbourne
Rachel PAYNE (South-Eastern Metropolitan):
My constituency question is for the Treasurer. My constituent is the owner of Skye Medical Centre, a bulk-billing GP clinic. They are concerned that a recent ruling by the State Revenue Office will result in them owing a substantial amount of payroll tax, which is to be calculated retrospectively. Like many areas, Skye struggles with adequate access to bulk-billing GPs, with less than half of the centres in the area offering bulk-billing for new patients. So my constituent asks: would the minister consider offering an amnesty to this clinic, similar to that occurring more broadly in Queensland and South Australia, to ensure those living in Skye can access bulk-billing services?
Received: 15 September 2023
Hon Tim Pallas MP
(Treasurer, Minister for Industrial Relations, Minister for Economic Growth)
Under the Payroll Tax Act 2007, payments made under a ‘relevant contract’ are subject to payroll tax. These provisions apply across industries and professions.
The State Revenue Office (SRO) has a longstanding position of determining on a case-by-case basis whether an arrangement between a medical clinic and a general practitioner is a relevant contract, in the same way it assesses arrangements in other industries.
In doing so, the SRO has regard to the terms of the contract as well as the surrounding circumstances. This case-by-case approach has been broadly endorsed by the Victorian and NSW courts. There has been no change to this approach.