State Revenue Office - Payroll Tax Authority

Understanding State Revenue Office payroll tax authority and audit activity.

Overview State Revenue Offices (SRO) in each Australian state and territory administer payroll tax. Medical practices must register for payroll tax if contractor payments are deemed wages and exceed thresholds. SROs are increasingly auditing medical practices following Thomas and Naaz [2021], with retrospective assessments commonly covering 5+ years.

Details State Revenue Office (SRO) - Payroll Tax Information:

What is the SRO? Each Australian state/territory has a State Revenue Office that administers payroll tax (names vary by jurisdiction).

Current Audit Focus: • Medical practices are priority audit targets • Post-Thomas and Naaz [2021] increased scrutiny • Contractor arrangement reviews intensified • Retrospective assessments covering 5+ years common

Payroll Tax Basics: • Applies to 'wages' including deemed contractor payments • Thresholds vary by state • Grouping provisions may combine related entities • Significant penalties for non-compliance

1. 1Risk profiling and selection
2. 2Information request
3. 3Document review
4. 4Interview/site visit
5. 5Assessment notice
6. 6Objection/appeal rights

Our SRO Experience: • Regular negotiations with all state SROs • Experience in assessment objections and negotiations • Audit defence expertise • Proactive compliance strategies

Have you received contact from State Revenue Office? We should discuss immediately.