Payroll Tax Risk Self-Assessment
Assess whether your Facilities Service Provider arrangements may, depending on the facts and applicable state legislation, fall outside payroll tax obligations - in 5 questions and under 3 minutes.
General information only. Not legal advice. No solicitor-client relationship is created by completing this tool.
How are the practitioners at your Facilities Service Provider entity engaged?
Frequently Asked Questions
General information about payroll tax and healthcare operators in Australia.
Do Facilities Service Providers have to pay payroll tax on practitioner payments?
It depends on the structure. Where practitioners genuinely supply their services through their own entity and retain clinical independence, the arrangement may fall outside the relevant contract provisions of state payroll tax legislation. Each state has its own rules, and the substance of the relationship is what matters - not merely the label applied to it.
What is a 'relevant contract' for payroll tax purposes?
Most state payroll tax laws extend to payments under 'relevant contracts' - arrangements that resemble an employment relationship even if the worker is nominally a contractor. Where a practitioner's agreement is structured appropriately and the practitioner retains genuine independence, the contract may not be a relevant contract, meaning the payments fall outside payroll tax obligations.
Which Australian states are most actively auditing healthcare operators for payroll tax?
New South Wales, Victoria, Queensland, and South Australia have all increased audit activity targeting healthcare operators in recent years. State Revenue Offices share intelligence and their focus in this sector continues to intensify. All Facilities Service Provider entities should review their exposure regardless of state.
Can a Facilities Service Provider be structured so it is not eligible for payroll tax?
A Facilities Service Provider may, depending on the facts and the relevant state's legislation, fall outside payroll tax obligations. Documentation is one evidentiary factor, and the whole arrangement - including the contract terms, conduct and flow of funds - must be considered. Obtain legal advice before acting.
What is the Tenant Doctor arrangement and how does it relate to payroll tax?
Hamilton Bailey is exclusively licensed to use the Tenant Doctor trademark in legal documents within Australia. A Tenant Doctor arrangement may, depending on the facts and the relevant state's legislation, support a position that payments are not taxable wages. Characterisation depends on the whole arrangement, including the contract terms, conduct and flow of funds, and on the relevant revenue authority's or tribunal's assessment.
What should I do if I receive a payroll tax audit notice?
We recommend obtaining advice before responding to the revenue authority so you understand your rights, obligations and any deadline. Hamilton Bailey assists Facilities Service Providers and healthcare operators with payroll tax reviews, responses and the assessment of future arrangements. No particular outcome is guaranteed.
General information only. The FAQs above provide general information about payroll tax law and do not constitute legal advice. Laws change and individual circumstances vary. Consult a qualified legal practitioner for advice specific to your situation.