The West Australian government has officially stated that it will uphold its existing payroll tax regulations concerning General Practitioners (GPs) working in medical practices.
Dr. Ramya Raman, Chair of the Royal Australian College of GPs in Western Australia, had expressed concerns to the state government.
She cited a written assurance from the Hon. Rita Saffioti, the Deputy Premier and Treasurer of Western Australia, affirming that the government had no intention of aligning with other states in imposing a payroll tax on medical practices.
The assurance outlined that, according to the current payroll tax provisions in Western Australia, most GPs employed under independent agreements in medical practices are considered independent contractors running their own businesses.
Moreover, a tax-free threshold of $1 million means that most are exempt from payroll tax.
The government has no plans to modify these provisions.
However, it's important to note that while the government will maintain its current interpretation of payroll tax laws, not every medical practice and practitioner arrangement in Western Australia will automatically fall outside the scope of these regulations and be exempt from payroll tax.
Each contract will need to be assessed individually on a case-by-case basis.