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Update: Payroll tax exemption relating to bulk-billing for GP Practices in New South Wales

Author: Craig Hong
2 min read
20 June 2024

Key Takeaways

  • General Practitioner (GPs) practices that bulk-bill 80% of patients in metropolitan Sydney and 70% for the rest of NSW will receive payroll tax rebates.
  • Unpaid payroll tax liabilities for payments made to general practitioner contractors up to 4 September 2024 will be waived.
  • GP practices should review Service Agreements and billing arrangements before 4 September 2024 to ensure they are compliant and potentially eligible for the proposed rebate.

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 or 07 3220 1144.

The information in this blog is intended only to provide a general overview and has not been prepared with a view to any particular situation or set of circumstances. It is not intended to be comprehensive nor does it constitute legal advice. While we attempt to ensure the information is current and accurate we do not guarantee its currency and accuracy. You should seek legal or other professional advice before acting or relying on any of the information in this blog as it may not be appropriate for your individual circumstances.

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