Over the past 18 months, payroll tax has become one of the most talked-about issues in healthcare accounting. For Victorian general practitioners, specialists, and practice owners, the recent changes introduced by the State Revenue Office (SRO) carry significant implications—both financial and operational.
This article breaks down the key updates affecting Victorian medical practices, what you need to do now, and how to prepare for the new compliance landscape from 1 July 2025 onwards.
| Tax-Free Threshold | $1,000,000 (phased out between $3M–$5M in wages) |
| Payroll Tax Rate | 4.85% (or 1.2125% for eligible regional practices) |
| Surcharge | Additional 1% for wages > $10M |
| Bulk Billing Exemption | Applies only to fully bulk billed GP services |
| Effective Date | 1 July 2025 |
| Annual Reconciliation | Must disclose “Exempt GP Wages” |
We've worked with numerous GPs and specialists across Greater Melbourne who’ve been blindsided by these changes. From assessing your risk
exposure to helping you adjust contracts or restructure payments, we can help you navigate with confidence.
Let’s make sure your practice is structured smartly. Talk with an accounting and tax specialist who understands both tax rules and the day-to-day realities of running a medical practice.
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