Queensland GP clinics may be given grace period to deal with payroll tax issues

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Queensland GP clinics may be given grace period to deal with payroll tax issues
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The Queensland Treasurer is in discussions with Premier Annastacia Palaszczuk about a plan to pause the implementation of payroll tax assessments on some GP clinics in a bid to curb increasing doctor fees.

The Queensland Government appears closer to resolving a dispute with general practitioners over payroll tax.It comes after a ruling that GPs are employees of clinics for payroll tax purposesDoctors have voiced concerns that a new interpretation of the laws, as they are applied to medical centres, could result in a rise in the cost of a GP visit.

GP clinics that are not currently paying a form of payroll tax could be given a grace period of several years, under a plan being discussed by the Queensland and New South Wales treasurers.General practitioners work under different models, with some operating under a service agreement with a medical practice where the clinic provides a space and support for the GP.

In December, the Queensland Revenue Office put out a ruling confirming that GPs were employees for payroll tax purposes and the fees they received should be taxable. Earlier this week, AMA Queensland president Maria Boulton labelled it "immoral" and a "tax grab" from the Queensland government.

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