Topic
Payroll tax for medical practices: state by state
Payroll tax is a state tax on wages above a threshold, and each state sets its own rate, threshold and rules. For medical practices the key question is whether payments to contractor doctors count as wages, and each state has published its own position. These guides cover each state, with links to the state revenue office.
What these guides cover
- Payroll tax for GPs and medical centres in NSW, Victoria and Queensland
- Payroll tax for GPs in South Australia, Western Australia and the ACT
- What a contractor agreement needs to cover (no templates)
- Hiring your first staff: payroll and super
Guides in this topic
Guides for this topic are on the way.
Frequently asked questions
Does payroll tax apply to a small practice?
Only once the wages you pay pass your state’s threshold, and for payroll tax, wages can include some payments to contractors. Check your position each year as your practice grows.
Can payments to contractor doctors count as wages?
They can. Each state’s contractor provisions decide when a payment to a contractor counts as wages, and state revenue offices have published guidance for medical practices.
Is there payroll tax relief for GP practices?
Several states have announced relief for GP practices. The conditions and start dates differ by state, and our state guides set out each one with its source.
Does DrBooks handle payroll tax?
DrBooks looks after payroll for solo and small practices and raises payroll tax when it becomes relevant. Multi-doctor clinics that need payroll-tax disputes or restructuring are referred to a specialist partner firm.
Where do I find my state’s rules?
On your state revenue office’s website. The sources on this page link to each one.
Sources
Last reviewed: · Colin Lua, registered tax agent