I get it. You are now bored to death about payroll taxes. You are probably prepared to stick a fork in my eye.
But I am prepared to take that risk on the off chance that what I say will make a difference.
So here goes.
Qld & SA Government have issued an amnesty so that medical practices do not have to pay payroll taxes until 2025.
Thing is you must register for it.
If you do this the process is:
1. You apply.
2. You get a list of questions so that they can work out what you would have paid in payroll taxes but then say you do not have to pay it (stupid I know but that is the system).
You need to apply by 29 September 2023.
If you don’t you cannot take advantage of the amnesty and you must immediately register and pay payroll taxes effective immediately.
There’s a lot more. If you apply
- It doesn’t automatically make you liable for payroll tax.
- It does not automatically give you the right not to pay retrospective payroll taxes if it is demanded – but that is unlikely – you would have to have done something criminal for this to happen.
- It gives you time to become compliant if you need to.
- If it becomes clear that you’re not liable for payroll tax, you can opt out of the amnesty process, and you don’t have to take any further action.
- If you don’t express your interest by 29 September 2023, and it is later found you are liable for payroll tax on your contracted GP payments, you will have to pay the full tax amount, interest and any penalties going back to 2018.
- If you’re unsure whether you’re eligible for the amnesty, the best thing might be to express an interest before the closing date.
So, should you do it?
Well, let’s take the options:
If you take advantage of the amnesty
1. It does not automatically mean you are liable for payroll taxes.
2. You express an interest to take advantage of the amnesty and later provide information.
3. From this it will be determined if you are liable to payroll taxes or not.
4. If not, happy days, you get out of paying payroll taxes
5. If you must pay you do not have to pay until after 30 June 2025 and gives you time to restructure.
If you do not take advantage of the amnesty
1. You could have a payroll tax audit.
2. If you are found not liable – happy days – you have nothing to pay.
3. If found liable – pay in full for amounts from 2018 onwards with penalties and interest.
Below is a summary for you
In most cases, practices will apply for the amnesty. But you must take advice to make sure you know what it means.
