Audit pause for medical practices
The Revenue, Fines and Other Legislation Amendment Act 2023 amended the Taxation Administration Act 1996 to provide a 12-month pause on audits of medical practices that engage general practitioners.
Who do the amendments apply to?
The amendments only apply to a medical practitioner who holds registration as a general practitioner under the Health Practitioner Regulation National Law and any medical practice that has a practice arrangement with a general practitioner.
What is the specified period?
The specified period is 12 months commencing on the date of assent of the Revenue, Fines and Other Legislation Amendment Act 2023.
The act was assented on 4 September 2023.
How do these amendments apply to audits conducted before and after the specified period?
During the specified period, if payroll tax is payable but is not paid, then no interest or penalty tax will be applied to the unpaid payroll tax.
Any interest accrued on a payroll tax default up to the date of Royal Assent is payable during and after the specified period.
Any penalty tax accrued on a payroll tax default up to the date of Royal Assent will be waived and is therefore not payable during the specified period.
If an audit of a registered medical practice offering the service of a general practitioner is conducted after the specified period, and the audit results in an assessment of a payroll tax liability, no interest is payable for the specified period. Interest will be imposed on the primary tax incurred after the specified period.
If an audit of a registered medical practice offering the service of a general practitioner is conducted after the specified period, and the audit results in an assessment of a payroll tax liability, no penalty tax will be imposed for any period before or during the specified period.
If an audit had been conducted before the specified date and the taxpayer is making instalment payments to pay their payroll tax liability, the interest and penalty tax applied during the specified period will not be payable.
The amendments do not provide for a refund of any interest or penalty tax paid before the specified period.
Are monthly and annual payroll tax returns still required during the 12-month specified period?
Yes.
New and existing payroll tax payers are required to continue lodging monthly returns and annual reconciliations and paying all their payroll tax liabilities during the 12-month specified period.
More information
Read a summary of the amendments in the Revenue, Fines and Other Legislation Amendment Act 2023.
View the full Revenue, Fines and Other Legislation Amendment Act 2023.