Payroll Tax - Latest Update

The ADA and ADA SA in partnership met late last year with the South Australian Treasurer, The Hon. Stephen Mullighan MP, to discuss the implications of this ruling on dental practices in South Australia who may be affected by this. 

The Treasurer was firm that the ruling would be applied to South Australian Payroll Tax legislation as the South Australian Government was a signatory to the 2010 Joint Harmonisation Protocol which brings in line payroll tax provisions across jurisdictions.

However, after the meeting, and with repeated follow up by ADA and the SA Branch, we can confirm that the Treasurer has agreed “that the South Australian State Government will commit to not assessing retrospective payroll tax and any associated interest and penalty tax in respect to contracted dentists for dental clinics and practices currently not registered and holding relevant contracts, on the condition that they register for payroll tax by 30 June and pay an applicable payroll tax with effect from 1 July 2024”.

In addition, the Treasurer confirmed that “With respect to those dental clinics and practices currently registered and remitting payroll tax, the SA Government will not seek to retrospectively raises assessments concerning contracted dentists where such have not been declared in past self-assessments”.

“It is important to note that this retrospective arrangement applies to contractor arrangements only; all other payroll tax obligations continue to apply to dental practices including for employee wages and grouping arrangements.”

We recommend that Members seek their own independent advice from their accountant to discuss their ongoing requirements regarding payroll tax from July 2024.