These are just some of the latest ATO requirements for independent contractors within the health sector.

In today's digital age, having an online presence is crucial for any business, and the health sector is no exception. As a digital marketing agency we work with medical practices and their health practitioners alike, to cut through the noise and help them get the most out of their technology.

A strong digital strategy requires an intricate understanding of the health sector, from staying compliant with AHRPA Guidelines to keeping you informed and up to date with the latest grants and industry best practices – we’ve got you covered!  

Recently, the Queensland Revenue Office and the Australian Taxation Office (ATO) have issued new rulings that mean medical and health contractors could lose their contractor status, leading to a large tax bill, unless they actively advertise their services to the public as an independent contractor.

Short on time?

Here's what you need to know:

• In late 2022, the ATO reinforced the need for medical contractors, including general practitioners, specialists, surgeons, physiotherapists, and chiropractors, to have their own independent public offers or invitations to be considered independent contractors. 

• To meet this requirement, it's essential to have your own website, separate from the practice you work with.

• It should also have a separate domain name and email address, linked to and from your practice's website to show that you genuinely operate as an independent and separate business.

• Your website should be accessible, inclusive, and mobile-friendly, especially for patients with disabilities and/or language difficulties.

What sort of tax bill are we talking about here?

According to The Medical Republic, recent rulings from the Queensland Revenue Office and the Australian Taxation Office mean that overnight, practices could find themselves paying not just payroll tax, but up to $7,000 a month for a full time GP’s PAYG, super, Workcover, insurance plus other employee on-costs – going back five years (Mar, 2023).

What does the ruling state?

Don’t just take our word for it, to quote the Queensland Revenue Office and ATO ruling directly, "the practitioner must operate their own independent medical practice responsible for such matters as advertising and attracting patients". And “the offer or invitation must be the reason that the sole trader or personal services entity (PSE) obtained the work from the client, and there must be a direct causal effect between the offer or invitation and obtaining the work." 

This means that every contractor needs to make a "public offer" of their own services, separate from the practice they work with, otherwise they risk being classified as an employee rather than a contractor.

This tax ruling is not something to ignore, as the ATO now has data-sharing and matching laws and tools that can instantly pick up any reporting differences, such as income banked using the incorrect ABN. Services Australia is also e-invoicing compliant, enabling them to track and report all earnings in real-time.

Where does GippsTech come in?

If you haven't yet set up your own website, it’s never too late to get started but there’s a real sense of urgency to do so. Failure to comply may put both you and your practice at risk of a payroll or income tax. It's essential to have your own separate domain name and email address, linked to and from your practice's website to show that you genuinely are operating a separate business as an independent contractor.

At GippsTech, we understand that building and maintaining a website may not appeal to every health practitioner. However, it's become a significant tax issue that requires your attention. We are not accountants or tax advisers, so we urge you to seek specialist medical accounting advice tailored to your case, and ensure your service agreements and service fee accounting and reporting systems comply with this ruling. However, what we can help you with is creating your own independent contractor website, to help show that you really are operating an independent business separately from the medical practices you work with.

As thought leaders in digital marketing, we want to emphasise the importance of having an online presence in today's digital world. It’s not just about promoting your services and building trust with your patients. It’s equally important making your services accessible, inclusive and mobile-friendly for all, and especially for patients with disabilities and/or language difficulties.

Practice Manager at Central Clinic, Mario Gupta, explains “Prior to developing our new website, staff were spending more time booking appointments or answering questions over the phone than they were spending quality, face to face time with our patients. Now, patients usually go to the website first to make appointments and answer common questions. And with lots of new people moving to the area, a beautiful website is a big reason for them to choose us.” 

If you're unsure how to get started, our team at GippsTech are here to help you navigate this new requirement and build a strong digital strategy that will benefit your business in the long run.

Contact us today for a free consultation.