The NSW Government has announced as part of its 2024-25 state budget, a Bulk-Billing Support Initiative that will see retrospective unpaid payroll tax liability for GP practices waived and a payroll tax rebate to practices that meet bulk-billing thresholds. 

From 4 September 2024, GPs that bulk-bill 80% of their patients in metropolitan Sydney and 70% for the remainder of the State can claim a complete tax rebate for payroll tax. We understand the NSW Treasury will release further details on how practices can claim the rebate under this scheme. 

The threshold is all or nothing. If a GP practice does not meet the required bulk-billing threshold, those practices will not be able to claim the proposed rebate.

Importantly, we understand the Government will also exempt past, unpaid payroll tax liabilities for payments made by a GP practice to GP contractors up to 4 September 2024. 

While the State Government has not yet legislated these proposals, the announcement will be welcome news for many GP Practices throughout NSW following months of uncertainty.

The announcement to legislate no retrospective payroll tax liability provides clarity for GP practices as to which specific GPs and services will be liable for payroll tax moving forward.

It is important for GP practices who may be close to these requisite bulk-billing thresholds to consider their billing arrangements and make any necessary alterations before 4 September 2024 to ensure they are eligible for the proposed payroll tax rebate. 

Practices that are unlikely to meet the relevant bulk-billing threshold should carefully consider their position and seek appropriate accounting and legal advice prior to 4 September 2024.

Even where a practice considers that they are likely to achieve the bulk-billing targets, ensuring that they have best practice contracts and billing practices in place will assist in the event of any future changes to the thresholds or a decrease in the amount of bulk billing work done.

To discuss your practice arrangements in more detail, please contact Director, Craig Hong on craig@hillhouse.com.au or 07 3220 1144.