What has happened

On 1 August 2025, the Court of Appeal unanimously held that Uber’s payments to its drivers were subject to NSW payroll tax, reversing an earlier Supreme Court ruling in Uber’s favour.

The Court of Appeal agreed that relevant contracts were established under the driving arrangements as drivers provided driving, referral, and rating services to Uber. The decisive issue was that the payments to drivers were found to be “for or in relation to” the work performed in contrast to the Supreme Court view. While the Court of Appeal considered the “relevant contract” framework and the statutory exclusions under the Payroll Tax Act 2007 (NSW), Uber was largely unsuccessful in substantiating that any exclusion applied.

Uber’s argument that it merely acted as an agent for rider payments was rejected, with the Court noting the driving service is fundamental to Uber’s business, reinforcing the connection between drivers’ work and the payments.

On 29 August 2025, Uber filed its special leave application to challenge the Court of Appeal’s reasoning.

Implications for other companies

This decision fits within a progression of cases in which revenue authorities have tested and broadened the application of payroll tax provisions to contractor models and new industries. The trend has been towards expansive interpretations, particularly the types of payments that can be considered “for or in relation to work”.

If the decision stands, exposure may not be limited to the gig economy which includes rideshare, food delivery, and freelance platforms. Revenue-share arrangements in other sectors such as sales and content platforms, may also be scrutinised. Authorities may additionally question distributions described as “profit,” particularly where amounts can be traced to the performance of work.

How SW can help

Although this is a watch-and-see period, at-risk businesses should begin reviewing contracting arrangements and payment flows for similar exposure. Practical levers include the structure of payment arrangements and the design and implementation of processes, controls, and evidence to substantiate any available exemptions.

Contact SW today to assess the payroll tax risk in your current contracts and payment practices and safeguard your business against potential payroll tax risks. Don’t wait, proactive steps now can save significant costs later.

Contributor

Oliver McDonald

The post Payroll tax and the gig economy: Uber seeks High Court appeal  appeared first on SW Accountants & Advisors.

Bulk-billing support initiative

To counteract the increased cost of living pressures, the NSW government has introduced an exemption and rebate on payroll tax liabilities for payments to contractor general practitioners (GPs) by medical practices meeting the relevant bulk-billing threshold. The relevant bulk-billing thresholds for Sydney and the rest of NSW is 80% and 70% respectively.

In addition, historical unpaid payroll tax liabilities for pre-4 September 2024 payments made to contractor GPs will be exempt from payroll tax. After the 4^th of September 2024, medical practices meeting the bulk-billing threshold requirements will be eligible to receive a complete rebate for payroll tax associated with the payments made to contractor GPs. 

The aim of this measure is to support accessibility and affordability of health-care by incentivising medical practices to increase bulk-billing to gain eligibility to the rebate. It was projected that this measure is expected to reduce payroll tax revenue for NSW by roughly $180.8 million over the next four years, though the actual impact is likely to be less as medical practices restructure affairs such that the payroll tax obligation does not arise in the first instance.

How SW can help

Medical practices operating in NSW should carefully consider the above changes and how they might take advantage of the upcoming relief initiative. For instance, GP clinics may like to consider the structure of their arrangements with GPs where they meet the threshold requirements, particularly where GPs are engaged as employees.

Some important things to consider are whether the practice is eligible under the bulk-billing threshold requirement as well as reviewing contracts with GPs and the overall billing practices to ensure everything all information is accurately taken into consideration. 

For those practices where the measures do not apply, it is worth considering whether and how contractor arrangements may be restructured to reduce adverse payroll tax implications. In addition, it may be worth considering which payments at or around the cut off time may be eligible for the exemption.

Contributors

Oliver McDonald

The post NSW Bulk billing GP clinics given payroll tax concessions appeared first on SW Accountants & Advisors.

Key takeaways

• Focus on hospitals and schools.
• Health spending is 31% of the 2024-25 budget’s operating expenses.
• Infrastructure spending program has an added $4.9bn for targeted new investments in critical areas.
• The already announced Commercial and Industrial Property Tax (CIPT) regime is on the horizon.
• Delay of Airport Rail link.
• Payroll Tax threshold to be lifted to “make things easier” for small business.

What does the State Budget mean for you?

Property & infrastructure

Payroll Tax

Contributors

William Zhang

Blake Rogers

The post VIC State Budget 2024/25 appeared first on SW Accountants & Advisors.

This paradigm shift for Victorian non-profit private schools mandates proactive measures in establishing processes and templates, upskilling staff, and addressing potential challenges, ensuring a seamless transition into compliance with payroll tax obligations. While other jurisdictions have not announced any similar changes, the Victorian legislation paves the way for other jurisdictions to follow suit. 

Starting from 1 July 2024, Victorian non-profit private schools with an income per student exceeding $15,000 will be subject to payroll tax. Employers must assess their own liability for payroll tax, regularly submit returns and make payments, typically monthly, to the Victorian SRO.

While navigating these changes seem supposedly straightforward, there is a good reason the SRO is one of the most active agencies with their data matching and compliance programs. Schools need to ensure that processes are well designed, to avoid common errors, minimising manual input and intervention and align with other submissions to other Government authorities (e.g. workers compensation, trainees and STP). This will also prevent overburdening existing employees with another time-consuming monthly process.

How to prepare for payroll tax changes

At a high level, schools newly subject to payroll tax will need to take steps before the obligations begin, including:

1. register for payroll tax and PTX express
2. review internal systems, processes and data to address risk areas such as:
   • treatment of pay codes | ensure that pay codes are set up correctly to accurately disclose taxable wages in the required categories, including salaries, commissions, leave, allowances, superannuation, and more
   • treatment of contractors | the relevant contract provisions extend payroll tax obligations to all service-based arrangements, with taxpayers needing to assess each non-employee worker against a series of 8 exclusions
   • grouping | The payroll tax grouping provisions can be complex, and if caught can result in the reduction of available payroll tax thresholds
   • data matching and investigation risks | it is not sufficient to get the taxable wage amount correct. Schools should ensure that disclosures align with other submissions to minimise the risk of investigation.
3. understand their systems and available data and developing a robust monthly process, including:
   • a process and documentation for data extraction and review
   • a working template for calculations
   • a review and lodgement process and controls
   • documentation of important payroll tax positions, process and methodology.
4. maintain ongoing processes for compliance with changing law and regular testing of existing processes.

How SW can help

As this is uncharted territory for many schools, our SW payroll tax experts are offering a comprehensive package to assist school finance teams get up and running with their payroll tax processes. This package includes:

• understanding the payroll systems and data, as well as the process for engaging contractors.
• working with the team to get detailed descriptions of pay codes and determine payroll tax positions (including recommendations to restructure pay codes if needed).
• designing an Excel-based model (e.g. using PowerQuery/PowerPivot) in conjunction with the school for monthly and annual payroll tax reconciliations.  This template is designed to source information from raw data files (e.g. payroll reports) and produce the required breakdown for payroll tax returns with minimal manual manipulation.
• documentation of methodology and positions (including a matrix of pay codes, descriptions and payroll tax positions).
• payroll tax training for staff members including use of the model.
• assistance with the preparation of the first payroll tax return and ad hoc support for 6 months for queries that arise after handover process
• review of the first annual payroll tax reconciliation.

We offer complementary initial discussions for us to understand the school systems and processes as well as data sources as well as highlight discuss any risk areas.

Contributors

Zainab Ayub

The post Victorian private schools navigate new payroll tax norms appeared first on SW Accountants & Advisors.

The NSW and VIC Revenue Authorities have recently published harmonised revenue rulings (Revenue Rulings PTA-041) following similar rulings in QLD and SA. These rulings confirm the Revenue Authorities official position that payroll tax is likely to apply to payments made by medical practices to medical practitioners under the ‘relevant contracts’ payroll tax provisions irrespective of whether the fees under contractual arrangements are merely processed on behalf of the medical practitioner.

This ruling has far-reaching implications for medical centres, dental clinics, physiotherapy practices, radiology centres, and similar healthcare providers that have not been treating these payments as subject to payroll tax. We recommend that immediate action to assess compliance both retrospectively and on an ongoing basis as well as consider whether arrangements are optimally structured. If retrospective issues are found, employers can consider voluntary disclosure or amnesty/exemptions if available. The SW Team is here to guide you through these complex changes.

Introduction

Followed by rulings in QLD and SA, the Victorian State Revenue Office and Revenue NSW have issued rulings that may subject many medical practices to payroll tax on practitioner payments processed through the practices. We have provided links to each of the rulings below:

• NSW | PTA 041 Payroll Tax Act- Relevant Contracts – Medical Centres | Revenue NSW
• VIC | Relevant contracts – medical centres | State Revenue Office (sro.vic.gov.au)
• QLD | Public Ruling PTAQ000.6.1 Relevant contracts—medical centres – Queensland Revenue Office (qro.qld.gov.au)
• SA | PTASA003 | RevenueSA

These rulings, influenced by recent court decisions, aim to impose payroll tax on practitioner payments processed by medical practices which would not ordinarily be considered derived as income or treated as an expense when paid by the medical practices for income tax or accounting purposes. It casts a wide net, potentially impacting a broad spectrum of healthcare providers.

While it is important to recognise that the rulings are harmonised, meaning they are consistent across different jurisdictions, each jurisdiction has responded differently to the impact of the changes, with responses mainly in relation to General Practitioner (GP) medical practices. See below for details on concessions in ACT, SA, QLD and NSW.

The rulings provide clarity on the harmonised position adopted by the Revenue Authorities but also raises urgent concerns for medical practices. It applies to existing arrangements and can have retrospective effect depending on whether amnesty or an exemption is available.

Relevant contract provisions

The recent payroll tax rulings and court decisions centre around the application of the Relevant Contract provisions and understanding how these provisions work is essential for medical practices.

A relevant contract is an agreement that can be characterised as a contract for the performance of work, such as a service or contracting agreement. Prior to the recent court decisions, it was generally only payments that were directly referrable to services rendered which were treated as subject to payroll tax. This meant many medical practices may not have included payments distributed to practitioners as subject to payroll tax on the basis that patient fees were directly derived by the practitioners as income (though the collection and distribution of the patient fees was processed by the medical practice). The medical practice then earned its income from a proportion of patient fees charged by the medical practitioner as payment for administration and facility services.

In other words, the rulings and court decisions expanded the conventional understanding of the types of payments which could be subject to payroll tax.

The rulings have determined that if a medical centre engages a practitioner to practice from its premises, or if it provides patients with access to the medical services of a practitioner, a relevant contract likely exists. Payments while not derived or treated as income by the medical practice are considered taxable payments under the ‘relevant contract’ provisions.

In other words, the medical centre is deemed to be an employer, and the practitioner is deemed to be an employee, making any payments under the contract subject to payroll tax.

While the rulings have broadened the scope of what constitutes a relevant contract and the type of payments the provisions capture, certain exclusions may still apply to mitigate or eliminate payroll tax liability. The exemptions that are more likely to apply to a contract between a medical centre and a practitioner include:

• the practitioner providing services to the public generally (e.g. if the practitioner provides services to more than one medical practice)
• the practitioner performing work for no more than 90 days in a financial year
• services performed by two or more persons (e.g., a practitioner personally providing a nurse or assistant).

It’s essential for medical centres to carefully evaluate their contractual arrangements on a case-by-case basis to determine if the work performed by the medical practitioner is considered services for the practice, whether the payments are capture by the provisions and if so, whether any of these exclusions apply. Professional advice is recommended to ensure complete understanding and accurate compliance with these provisions, and whether arrangements should be re-structured or clarified on a go forward basis.

Medical centres should also consider whether the employment agent provisions may apply to the arrangement (meaning that the Relevant Contract exclusions do not apply).

It is important to note that there are a number of jurisdictions which have not issued the harmonised ruling and we briefly summarise the “state of play” in these jurisdictions:

• ACT – Has recently announced concessions for general practitioners so it is likely that a similar position is adopted
• NT and TAS – There has not been any indication in these jurisdictions as to whether a similar view will be adopted
• WA – The legislation in WA is significantly different and in a letter to the RACGP, confirmed that most General Practitioners will continue to be treated as independent contractors (i.e. not subject to payroll tax).

What concessions have been made available?

Certain concessions have been announced/offered in ACT, SA, QLD and NSW which we briefly outlined below:

• ACT – the ACT Government announced that payroll tax on payments made to General Practitioners (GP) is waived to 30 June 2023 with the compliance deadline extended to 2025. Further, an exemption to 30 June 2025 will be available for GP payments for practices which bulk bill 65 percent of all patients and have registered for MyMedicare. Applications will need to be made to the ACT Revenue Office by 29 February 2024
• SA – An amnesty is available on GP payments up to 30 June 2024 for designated medical practices that make a voluntary disclosure and register for payroll tax if necessary. Medical practices must comply with payroll tax obligations post 30 June 2024. Expressions of interest must be made by 30 September 2023
• QLD – An amnesty is available on GP payments up to 30 June 2025 for medical practices that make a voluntary disclosure prior to 30 June 2025 and register for payroll tax if necessary. Expressions of interest must be made by 29 September 2023
• NSW – the NSW Government announced that they will pause audits on medical centres for 12 months to consult with GP groups. Interest and penalties accrued will be paused.

Who is impacted?

• Medical centres not only including GPs
• Dental clinics, physiotherapy practices, radiology centres, optometrist centres
• Other allied healthcare providers contracting with medical, dental, and other health practitioners.

It should be noted that while the cases and rulings focus on the medical industry, it would not be inconceivable for the Revenue Authorities to apply the principles to other industries which rely on similar legal constructions for structuring work performed and payments. Examples could include veterinarian practices, personal trainers in commercial gyms or sports coaches, nail technicians in nail salons etc.

What is the impact?

Immediate action is required given the ruling’s retrospective and prospective application.

The impact will differ depending on whether the medical practice is a GP medical practice. 

All medical practices will need to consider how their medical practitioner arrangements should be treated under payroll tax law, whether payroll tax shortfalls arise on a retrospective basis and whether an increase in the payroll tax oncost is likely on an ongoing basis. If payroll tax shortfalls do arise there is a potential for interest and penalties to accrue which can be mitigated by making voluntary disclosures.

GP medical practices should consider the various concessions that are available to reduce any payroll tax shortfalls or ongoing oncost, as well as interest and penalties. In particular, practices should ensure that applications or expressions of interest have been lodged by the due date if relevant.

How can SW help?

Medical practices must review their current agreements to assess whether they evidence a relevant contract and consider whether agreements should be updated or changed and any voluntary disclosures which may need to be made (even if amnesty applies).

There are essentially three limbs for payroll tax to apply under the Relevant Contract provisions:

1. that services are provided to the medical centre
2. that there is a payment for payroll tax purposes and
3. whether an exclusion applies.

Each of these should be considered in the review of retrospective arrangements, but also with a view to compliance or risk mitigation on an ongoing basis.

The SW Team, with its expertise in tax law, is ready to assist you in navigating these complex changes. Our dedicated team can:

• conduct a comprehensive review of your existing agreements and structures
• provide tailored advice on compliance and potential exclusions
• work with the business to restructure arrangements to mitigate risk with ongoing payroll tax obligations
• assist with private rulings on for prospective arrangements with the SRO
• assist with voluntary disclosure if needed
• offer ongoing support to ensure alignment with the latest legal requirements.

Contact the SW Team today to schedule a consultation and ensure that your practice is prepared for these significant payroll tax implications. Our expert team is here to support you every step of the way.

The post Payroll tax implications for medical practices – are you prepared? appeared first on SW Accountants & Advisors.

Throughout his career, Paul has been proud to help his clients create value through innovation and commercially-based critical thinking and he is passionate about bringing new opportunities.

The post Paul Hum, Partner appeared first on SW Accountants & Advisors.

Janelle’s clients have included those that operate in the following sectors: IT, professional services, wholesale importing, property development and investment, and not-for-profit.

Janelle has demonstrated capability in delivering outstanding outsourcing services for start-up companies, SME and publicly listed companies and Australian subsidiary entities of large multinational groups.

Janelle provides specialist advice on all employment related taxes including: GST, FBT and salary packaging. She advises clients on the following areas:

• Audit risk for indirect tax compliance
• Payroll tax
• WorkCover for employees and contractor arrangements
• Financial analysis and management reporting
• Financial modelling
• Business structuring.

Janelle is a member of the Institute of Chartered Accountants.

The post Janelle McPhee, Partner appeared first on SW Accountants & Advisors.

Revenue measures announced as part of the 2022–23 Queensland Budget, include:

• a mental health levy on payroll taxes above $10m
• extension of payroll tax deduction for small and medium Queensland businesses with the deduction being extended from the current ceiling of $6.5m in annual Australian taxable wages up to $10.4m
• 50% payroll tax rebate for apprentices and trainees will be extended for a further 12 months to 30 June 2023, and
• foreign acquisition duty relief for foreign buyers who are retirement visa holders when purchasing their principal place of residence on or after 1 January 2023.

Mental health levy

A mental health levy will be introduced which will apply to payroll tax liabilities arising on or after 1 January 2023. This will be applied to large employers, or groups of employers, with annual Australian taxable wages over $10m, including an additional levy applied to taxable wages over $100m, providing funding for mental health services.

The mental health levy will be applied as follows:

• a 0.25% levy on the annual Australian taxable wages of employers, or groups of employers above $10m
• an additional 0.5% levy on the annual Australian taxable wages of employers, or groups of employers, above $100m.

The levy will only apply to the portion of the wages above the respective taxable wage amounts (i.e. on a marginal basis).

Payroll tax relief for small to medium employers

Payroll tax relief will be provided for small and medium businesses, by increasing the payroll tax deductions available to employers, or groups of employers, with annual Australian taxable wages of between $1.3m and $10.4m. These changes are proposed to apply to payroll tax liabilities arising on or after 1 January 2023.

Racing levy

A 5% racing levy will be applied to the betting tax rate and bonus or free bets will be incorporated into the calculation of betting tax for liabilities arising on or after 1 December 2022.

Progressive coal royalty rates

3 additional progressive coal royalty rates will apply. The new tiers will apply on that part of the average price per tonne of the coal sold, disposed of or used on or after 1 July 2022 as follows:

• 20% for prices exceeding $175 AUD,
• 30% for prices exceeding $225 AUD, and
• 40% for prices exceeding $300 AUD.

How can SW help?

Please reach out to one of our experts below for assistance navigating the implications and opportunities this Budget presents for you, your business and your industry.

Contacts

Jeremy Wicht

Vincent Shi

The post QLD State Budget Overview 2022/23 appeared first on SW Accountants & Advisors.

• New and recent developments
• FBT recap and hot topics – reducing FBT on cars and car parking due to COVID-19
• Global mobility and impacts of COVID-19 on tax residency and employee tax obligation
• Payroll tax and COVID-19 concessions
• The rise in popularity and attractiveness of employee share and incentive plans (Corporate session only)
• Highlighting not-for-profit rebates and exemptions (NFP & Government session only)

Corporate session

Nor-for-profit & Government session

Contact us

The post Employment Taxes update 2021 appeared first on SW Accountants & Advisors.