Relevant Contracts, the Payroll Tax Dilemma and Medical Practices

In August 2023, the NSW State Revenue Office ruled that GPs working under fee-for-service arrangements would be employees for the purposes of payroll tax (i.e. relevant contracts), and the Victorian office issued a near-identical ruling at the same time. The NSW ruling was effective 1 July 2018, and followed two recent court cases (Thomas and Naaz and Optical Superstore) that questioned the independence of fee-for-service arrangements widely used by medical centres across Australia.