GP clinics lose appeal against $795,000 payroll tax demand

AMA NSW is now calling for GP practices to be made exempt from financially toxic regime
Dr Michael Bonning
Dr Michael Bonning.

GP practices should be explicitly exempted from payroll tax as a new regime of tax audits risks driving them out of business, medical groups warn.

AMA NSW has launched a new campaign, called Your Quality Care Taxed, coinciding with a legal challenge to the tax demands by a group of three practices that were hit with a $795,300 tax bill.

The practices’ appeal failed in the courts last month.

Owned by Sydney GP Dr Jawahar Thomas, they were audited back in 2018, with NSW tax officials finding that its 40 doctors should have been classed as employees rather than contractors.