Treasurer’s offer to waive payroll tax for failing practices ‘unfair’

Accountant Paul Copeland says Victoria should give GPs time to adjust to the new payroll tax rules.
Sarah Simpkins
Victorian Treasurer Tim Pallas.

The Victorian Treasurer has offered to save GP practices driven to insolvency by payroll tax, but an accountant says the state’s GP practices deserve better.

Victoria and Tasmania are the two states that have failed to offer GP practices protections from payroll tax following a NSW court ruling suggesting GPs may count as employees rather than contractors.

Tim Pallas, the Victorian Treasurer, wrote to GP groups last month arguing that the legal interpretation of payroll tax had not changed in the state.

The letter, seen by AusDoc, said Victoria’s State Revenue Office had investigated five GP practices between 1 July and 11 October this year, compared with an average of nine GP practice investigations each year since 2014.