Payroll-tax exposure | Medium exposure
Western Australia is NOT harmonised with the other states on contractors: it never adopted the relevant-contract deeming regime that drove the Thomas and Naaz medical-centre assessments elsewhere. Payments to a contracted practitioner are taxable only if the relationship independently meets the ordinary common-law employment tests, which RevenueWA assesses case by case. There is no GP exemption, ruling or amnesty because there is no deeming mechanism to relieve. The rate is a flat 5.5 per cent, and the $1,000,000 tax-free deduction diminishes at 2 dollars for every 13 dollars of Australia-wide wages above it, reaching nil at $7,500,000. Treat medical-centre exposure as case-dependent rather than automatic, and structurally lower than the eastern states.
References: Pay-roll Tax Assessment Act 2002 (WA) s8 (annual threshold $1,000,000, monthly $83,333, upper threshold $7,500,000) | Pay-roll Tax Act 2002 (WA) s5(4) (rate 5.5 per cent on and from 1 July 2023) | Pay-roll Tax Assessment Regulations 2003 (WA) reg 5 (the only prescribed deemed class is ship and boat building, nothing health-related) | RevenueWA Payroll Tax Employer Guide - contractor payments, updated 16 February 2024: WA "is not harmonised with the other jurisdictions regarding the treatment of contractors"