Payroll tax remains highly topical for general practices in 2025. The rules and relief settings now diverge across the states and territories, particularly around contractor GP arrangements, the flow of patient payments, and bulk-billing-linked concessions. This short update orients practice owners, managers and reception leads to the key differences, before you seek advice for your clinic’s specific structure.
Key Summary
- Relief varies: Some states have offered amnesties or rebates with opt-in and sometimes disclosure conditions; others take different approaches.
- Queensland: permanent exemption for contracted GP payments enacted in Feb 2025; separate, time-limited dentist amnesty ended 30 Jun 2025.
- Bulk-billing links: NSW, SA and (from 1 Jul 2025) VIC tie certain relief/exemptions to bulk-billed consultations and/or proportions.
- Western Australia: applies a different framework; does not levy payroll tax on contractor payments under its settings.
- Thresholds differ: e.g., VIC $1.0m from 1 Jul 2025; NT $2.5m from 1 Jul 2025; NSW $1.2m; QLD $1.3m; ACT $2.0m; SA $1.5m; TAS $1.25m; WA $1.0m.
Sources used: K&L Gates (11 Apr 2025) and William Buck (updated 15 Aug 2025).
State-by-State Highlights
New South Wales (threshold $1.2m)
12-month audit/penalty pause for GP practices (4 Sep 2023–3 Sep 2024). From 4 Sep 2024, a rebate applies where GP services are bulk-billed—80% in metropolitan Sydney, 70% in regional NSW—with disclosures through the Contractor section of payroll returns. (K&L Gates; William Buck)
Queensland (threshold $1.3m)
From 20 Feb 2025, permanent exemption for payments to contracted GPs (legislated). A separate, limited amnesty for contracted dentists covered 1 Jul 2018–30 Jun 2025 and required registration and voluntary disclosure by 30 Jun 2025. Payment routing matters: patient-to-GP payments differ from funds routed via third parties. (K&L Gates; William Buck)
Victoria (threshold $900k now; $1.0m from 1 Jul 2025)
Possible relief up to 30 Jun 2025 where practices had not paid payroll tax (or been advised it was payable) for contracted GPs before 30 Jun 2024. From 1 Jul 2025, exemptions are limited to fully bulk-billed GP consults, with a proportional formula (legislation introduced Oct 2024). (K&L Gates; William Buck)
South Australia (threshold $1.5m; deduction up to $600k)
Amnesty for contracted GP payments 1 Jul 2018–30 Jun 2024 (registration and voluntary disclosure). From 1 Jul 2024, exemption applies to bulk-billed GP consultations. Specialists/dental may have retrospective relief if registered before 30 Jun 2024, but no prospective exemption thereafter. (K&L Gates)
Australian Capital Territory (threshold $2.0m)
Waiver of unpaid payroll tax on GP payments up to 30 Jun 2023. Amnesty 1 Jul 2023–30 Jun 2024 required registration by 29 Feb 2024, ≥65% bulk-billing and MyMedicare; the 65% target was waived in Jul 2025. (K&L Gates; William Buck)
Tasmania (threshold $1,250,001)
No announced concessions or amnesty; both major parties indicated in 2024 that contracted GPs should not be subject to payroll tax, but no formal ruling yet. (William Buck)
Northern Territory (threshold $1.5m → $2.5m from 1 Jul 2025)
No GP-specific relief; the higher threshold from 1 Jul 2025 reduces exposure for many practices. (William Buck)
Western Australia (threshold $1.0m)
Uses a different (common-law) framework—assessing the overall relationship rather than “relevant contractor” provisions. Government notes many GP clinics fall under the threshold; no imminent changes signalled. (William Buck)
What’s Driving Exposure
- Contractor reality vs paperwork: who sets rosters, fees and policies; how branding is used; and whether agreements reflect day-to-day practice. (Both summaries)
- Flow of funds: patient-to-GP direct payments versus third-party routing through other entities or accounts can change outcomes. (William Buck)
- Bulk-billing links: where relief exists, it often ties to bulk-billed consultations or proportions (e.g., NSW, SA and VIC from 1 Jul 2025). (Both summaries)
- Evolving landscape: recent cases and legislative updates continue to shape interpretations. (K&L Gates)
The above are general themes only. Always check current state settings and obtain advice tailored to your clinic’s structure and bulk-billing profile.
Practical Questions for Practice Leaders (Non-Prescriptive)
- State map: In which jurisdictions do you operate, and what thresholds apply this year? (William Buck)
- Eligibility & timing: Do any amnesties/rebates/exemptions still apply—and what opt-ins, disclosures or dates matter? (K&L Gates)
- Contracts & cashflows: Do the service agreements match operational reality? How do patient payments move? (Both summaries)
- Bulk-billing profile: What are the bulk-billing proportions (metro/regional), and do they align with any state conditions? (Both summaries)
- Governance lens: Any grouping considerations or interactions with broader obligations (e.g., super, leave, Fair Work contractor tests from Aug 2024)? (K&L Gates)
The goal is not to self-assess liability, but to organise information so professional advice is efficient and context-aware.
Conclusion
2025 remains a transition year: Queensland has moved to a permanent exemption for contracted GPs; several areas link relief to bulk-billing proportions; and thresholds continue to shift. Because approaches differ across Australia, and details evolve, keep arrangements clear, note key dates and conditions, and seek advice specific to your clinic’s structure and bulk-billing profile.
Disclaimer: This blog is a general overview and should not be construed as professional legal, financial or medical advice.
FAQs
- Does Queensland’s permanent relief cover all GP contractor payments?
Queensland legislated a permanent exemption for payments to contracted GPs in Feb 2025. Payment routing can still matter in practice, so confirm how funds flow in your set-up. (K&L Gates; William Buck)
- Is bulk-billing always required to access relief?
No, requirements differ and can vary. Where bulk-billing applies, the proportions or eligible consults are specified (e.g., NSW, SA, and VIC from 1 Jul 2025 for fully bulk-billed consults). (Both sources)
- Do dentists and specialists have the same settings as GPs?
Not always. For example, SA notes potential retrospective relief for some specialists/dental up to 30 Jun 2024, but no prospective exemption; QLD had a dentist amnesty to 30 Jun 2025. (K&L Gates)
- Where can I track the latest settings for my state?
Use the overview pages from K&L Gates and William Buck linked below, alongside your state revenue office updates and professional advisers.
