GP practice loses legal battle over $800,000 payroll tax bill

A chain of GP practices has been ordered to pay nearly $800,000 in backdated payroll tax after losing a legal battle against a state revenue office.

Historically, GP earnings have usually been exempt from the tax because GPs are not deemed as working for their practices because they are paying a percentage of their billings as a service fee.

But in a NSW case, a tribunal ruled this month that the “onus of proof” lies with practice to show their GPs are not being employed — even when contracts specify otherwise.

To read the full article from Australian Doctor Group, click here.