Medical Centre Payroll Amnesty: QRO Guidelines & Updates

DATE PUBLISHED: May 15, 2023

key takeaways

The QRO has extended the payroll tax amnesty application deadline for medical centres to September 29, 2023, providing additional time to assess eligibility and prepare necessary documentation.
Eligibility requirements have been expanded, and medical practices must ensure they meet all criteria, including voluntary disclosure and ongoing payroll tax obligations.
Medical centres should review their contractor arrangements to optimize their financial structure and maximize the benefits of the amnesty program.

On 16 March 2023 the Queensland Revenue Office has published the Commissioner’s Guidelines for Administration of the payroll tax amnesty as well as further details in an Administrative Arrangement.

These publications provide some much needed clarity around the amnesty, but further questions have arisen from the publications.

what's new?

Extension to period to apply for amnesty

Of note is an extension for the due date for submission of expressions of interest/applications for the amnesty to 29 September 2023. This will provide medical centres time to consider their arrangements and to determine whether they are eligible for the amnesty.

Eligibility requirements

The eligibility requirements for the amnesty have been expanded to include a medical practice who:

is a designated medical practice;
submits an expression of interest using the online form on the relevant website by 29 September 2023;
makes a voluntary disclosure and, if not already registered for payroll tax, register for payroll tax in Queensland by 30 June 2025; and
complies with its ongoing payroll tax obligations after making the voluntary disclosure, this includes from 1 July 2025.

The two new requirements require some attention by medical practices to ensure they are compliant. Importantly the registration for payroll tax by 30 June 2025 (even if no payroll tax is payable due to the amnesty applying) and making voluntary disclosure.

There are little specifics around the voluntary disclosure that is required to be made by medical practices seeking to apply the amnesty, other than what information needs to be disclosed. The timing for such voluntary disclosure is not clear from the Guidelines and Administration Arrangement.

Voluntary Disclosure

The Guidelines and Administrative Arrangement refer to voluntary disclosure by medical practices which apply for the amnesty.

Voluntary disclosure requires sufficient information to enable the Commissioner to assess the practice’s eligibility for the amnesty and also to determine the practice’s payroll tax obligations. This includes annual wage information (including amounts paid to contracted GPs) for specified periods of time.

Summary of application of amnesty and actions to be taken by medical centres

We have summarised the application of the amnesty to different GP medical practices and actions that medical practices should consider taken as follows.

Note: for non-GP medical practices, no amnesty will be available as the amnesty only applies to payments to GPs. If the medical practice has some GPs and some specialists, the amnesty may still be available.

Medical Centre	Application of Amnesty	Actions to be Taken
Currently paying payroll tax on payments to contracted GPs.	No amnesty available. Must continue to include payments to contractors as taxable wages.	Review contractor arrangements to see whether they can be restructured in a manner which does not give rise to taxable wages.
Audit has been finalised and payroll tax is being paid on payments to contracted GPs.	No amnesty available. Must continue to include payments to contractors as taxable wages.	Review contractor arrangements to see whether they can be restructured in a manner which does not give rise to taxable wages. Review compliance with outcome of the audit.
Not paying payroll tax on payments to contracted GPs Not subject to audit Registered for payroll tax.	Amnesty should be available. Application for amnesty needs to be submitted by 29 September 2023.	Review contractor arrangements to see whether they can be restructured in a manner which does not give rise to taxable wages. Prepare for voluntary disclosure once further details are provided. Include the taxable wages payable to contracted GPs in payroll tax returns (but no tax will be payable in respect of those payments).
Not paying payroll tax on payments to contracted GPs. Not subject to audit. Not registered for payroll tax.	Amnesty should be available. Application for amnesty needs to be submitted by 29 September 2023.	Review contractor arrangements to see whether they can be restructured in a manner which does not give rise to taxable wages. Prepare for voluntary disclosure once further details are provided. Register for payroll tax and include the taxable wages payable to contracted GPs in payroll tax returns (but no tax will be payable in respect of those payments).
Currently under audit with the QRO with regard to payments to contracted GPs but audit not yet finalised.	Amnesty should be available. Application for amnesty needs to be submitted by 29 September 2023.	Review contractor arrangements to see whether they can be restructured in a manner which does not give rise to taxable wages.
Audit has been finalised but the medical centre has not maintained compliance with regard to payments to contracted GPs.	Amnesty should be available. Application for amnesty needs to be submitted by 29 September 2023.	Lodge payroll tax returns as required. Review contractor arrangements to see whether they can be restructured in a manner which does not give rise to taxable wages.

How Can We Help You?

If you require further information on the amnesty, the obligations once an application for the amnesty has been submitted or existing contractor arrangements, please reach out to us today.

conclusion

The QRO's payroll tax amnesty offers medical centres a chance to address payroll tax obligations penalty-free. It's essential to review contractor arrangements, assess eligibility, and prepare for voluntary disclosure by the September 29, 2023 deadline to take full advantage of this opportunity.

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