GP practice loses legal battle over $800,000 payroll tax bill

A NSW tribunal has ruled practices have to prove their GPs are not employees to avoid being taxed on all earnings
Geir O'Rourke
Dr Danielle McMullen
Dr Danielle McMullen.

A chain of GP practices has been ordered to pay nearly $800,000 in backdated payroll tax after losing a legal battle against a state revenue office.

Historically, GP earnings have usually been exempt from the tax because GPs are not deemed as working for their practices because they are paying a percentage of their billings as a service fee.