Hundreds of GP practices face fresh wave of payroll tax audits after Supreme Court ruling

AMA NSW president Dr Michael Bonning says there will be 'catastrophic impacts for practice owners'.
Sarah Simpkins

The new Supreme Court of NSW judgment against a GP practice group over a $790,000 payroll tax bill will trigger mass audits of other practices as state governments seek out more revenue, AMA NSW has warned.

Dr Jawahar Thomas went through multiple appeals to fight a 2018 Revenue NSW demand for money, arguing that his practices’ 40 GPs should be classed as independent contractors rather than employees.

On Tuesday, three Supreme Court judges sided with Revenue NSW — a decision dubbed “a nail in the coffin of general practice” by AMA NSW.

“We expect this decision to pave the way for an increase in audit activity,” said its president Dr Michael Bonning.