As of May 22, 2024, the Victorian Government has made significant changes to the payroll tax exemption for GPs. Here are the key points:
- Retrospective Relief for GP Practices:
- All Victorian GP practices will receive a retrospective exemption from payroll tax. This means that they will not be hit with a payroll tax bill that could potentially shut them down.
- The exemption applies to payments made to contractor GPs up to June 30, 2024.
- Extension of Exemption:
- For GP businesses that have not yet begun paying payroll tax on contractor payments, there is a further 12-month exemption extension.
- This extension will apply until June 30, 2025.
Payroll tax is calculated based on wages paid to employees above a certain threshold. For metropolitan businesses, the payroll tax rate is 4.85%. Regional employers pay a lower rate of 1.2125%
For Non-Exempt businesses, from 1 July 2024, the threshold will be raised to $900,000, and from 1 July 2025 the threshold will be raised again to $1,000,000 annually.
For further information, please contact us & we’ll be happy to answer any question you may have on the topic.