Last week my blog said I had no more to add to the payroll tax debate because you probably had enough.
Well, I lied because apparently, Queensland Government had other ideas. They threw a spanner in the works last Thursday. They did two things:
1. Extended the deadline for the Amnesty for the second time to 10 November 2023. This just proves to me that Qld Government is run by Muppets!
2. They made an astonishing announcement.
But this still resulted in many slaps on the backs of people in a celebratory mood. Accountants in the medical space were dancing and bobbing about (boy wouldn’t that be a sight to see). Those putting pressure on the Queensland Government thought they should be entitled to massive pay bonuses and many press releases were, well, released all saying their hard work had paid off and that they were brilliant and should be awarded the highest accolade of the land. On the face of it, this was tremendous.
Even I thought that the AMA & RACGP were amazing and wished my institute would work along similar lines. That lasted about an hour because once I thought about it and investigated it, I realized this was all smoke and mirrors. So, I decided to have a drink or two. To be honest I had a lot. So much so that it knocked me to such an extent you would have thought I was taking part in a snoring competition.
Anyway, medical practices have this mistaken belief they have been given a lifeline because the Queensland Government said if patients pay doctors directly no payroll tax had to be paid. I think what is about to happen is dangerous. It could be costly too.
That is because this payroll tax debacle is a complete disaster. Medical professionals are confused, and the states have no idea what they are doing. And then they are expecting people like me to explain this ‘no idea policy’ to you in the hope you will know what to do. Best of luck with that.
Because what happened last week was simply bonkers. Insane. Bizarre even.
And I cannot see this being a win. That is because the payment of fees by a patient directly to a doctor was only one part of the law. There are many other parts that need to be looked at and Queensland State seems to be suggesting they will ignore it. Things like service contracts, advertising responsibilities, and where goodwill sits. There is also the tricky issue of ‘offering services to the public’.
You see the thing is that these are also written in law. And there has not been a change in the law. A state cannot ignore the law so if it wants to do that it has to take these amendments and put it in front of parliament and pass it as law. And you cannot ignore case law such as Optical Superstore and Thomas and Naaz either.
And that is exactly what the Queensland Government wants to do.
Let me give you an example. There is a 50km speed limit where I live. The police could say they will take no action against red cars who speed. But that does not mean they won’t or that they cannot change their minds. What’s more, if complaints are made against the police and it goes to court what would a judge say? Well, judges look at the law and if it says it is illegal to speed, they will enforce it on all cars, including red ones.
And this is why I think what happened last Thursday was stupid. We should not be celebrating a promise but asking for clarity.
Because this promise is just a pinkie promise. Queensland state is saying they will not charge payroll tax to medical practices (red cars) but everyone else must pay. What are the chances that other industries (blue, black, green, etc. cars) are going to accept that? Worse, what if they go to court to ask a judge to rule on it?
And what is there to stop the state going back on this promise (which could happen if say the current Labour Government loses the next election) on the basis that the law is the law? Err….. nothing. A ruling does not override the law.
Basically, I think what the Queensland Government has just announced is, flouting the law, and is possibly illegal.
So, what now? And not for the first time I am going to tell you I haven’t got a clue.
