Payroll tax amnesty for contracted dentists
A payroll tax amnesty applies to payments to contracted dentists.
Payroll tax may apply to payments to contracted dentists if there is a relevant contract.
Dental clinics that are eligible for the amnesty are not required to pay payroll tax on payments made to contracted dentists up to 30 June 2025 and for the previous 5 years (i.e. 2018–25).
Who is eligible
The amnesty is limited to payments made to contracted dentists. For the purposes of the amnesty, a dentist is registered as a dentist with the Dental Board of Australia.
The amnesty is not available for payments to contracted dentists where an exemption applies (because no payroll tax liability would arise if the payment is exempt). It is also not available for payments to dentists who are common law employees.
To be eligible for the amnesty, a dental clinic must:
- be a designated dental clinic
- make a voluntary disclosure and, if not already registered for payroll tax, register for payroll tax in Queensland by 30 June 2025
- comply with its ongoing payroll tax obligations after making the voluntary disclosure, this includes from 1 July 2025.
A ‘designated dental clinic’ for payroll tax purposes is an employer that conducts a medical centre business (as set out in Public Ruling PTAQ000.6) and one of the following applies:
- meets the criteria for registration under section 52 of the Payroll Tax Act 1971 but is not registered for payroll tax in Queensland and makes payments to contracted dentists
- is registered for payroll tax in Queensland but is not declaring its payments to contracted dentists for payroll tax
- is or was subject to audit activity (that has not been finalised) in relation to its payments to contracted dentists
- has been assessed on payments to contracted dentists as a result of audit activity.
See the following documents:
- administrative arrangement that sets out the terms of the amnesty
- Commissioner of State Revenue’s guidelines on how the amnesty will be administered.
What happens next
You have until 30 June 2025 to review your arrangements and:
- register for payroll tax (if you have not yet registered)
- make a voluntary disclosure.
Registration
Log in to QRO Online to register for payroll tax. When completing the registration form, do not include payments to contracted dentists. We will process these payments based on your voluntary disclosure information.
See how to register.
Voluntary disclosure
The voluntary disclosure must contain information for the Commissioner of State Revenue to assess your eligibility for the amnesty and your payroll tax obligations.
- This will generally mean annual wage information, including total of payments to contracted dentists, for the:
- financial year in which the disclosure is made
- previous 5 financial years.
- For certainty about the payroll tax treatment of your arrangements, you can also provide copies of agreements with contracted dentists to us along with why you consider payments are exempt.
This information will vary depending on whether you are undergoing (or have undergone) audit activity. We will work with you to help you satisfy the requirements of the amnesty and use the information we already have to minimise impacts to your clinic.
If we need more information to confirm your eligibility for the amnesty, we will contact you.
Complete forms RS2.5 and RS1.6 and email to pt.compliance@treasury.qld.gov.au any time up to 30 June 2025.
Use this form to disclose amounts paid to contracted dentists and other contractors for the previous 5 financial years. In the column:
-
- Exemption claimed, select Other – Provide details.
- Explanation, enter Dentist amnesty.
- Evidence available, enter Registered with Dental Board of Australia.
You also need to disclose contractor payments that are not eligible for the amnesty; for example:
-
- allied dental health professionals
- other types of contractors.
This form helps us to determine your liability for payroll tax while ensuring exempt wages are not included in your taxable wages.
Best Dentist Clinic pays $1.5 million in taxable wages in the 2022–23 financial year, including $400,000 of payments to contracted dentists.
Because the clinic’s taxable wages (excluding payments to contracted dentists) are under the $1.3 million threshold (i.e. $1.5 million less $400,000), it isn’t liable to pay payroll tax for that financial year. However, the clinic must register before 30 June 2025 to access the benefits of the amnesty even where no payroll tax will ultimately apply.
In the 2023–24 financial year, the clinic pays $2 million in taxable wages, including $400,000 of payments to contracted dentists.
The clinic’s payroll tax liability will be assessed based on $1.6 million of taxable wages (i.e. $2 million less $400,000). Because the clinic’s taxable wages (excluding payments to contracted dentists) exceed the $1.3 million threshold, it will be liable to pay payroll tax for that financial year.
Ongoing obligations
As a dental clinic, you must continue meeting all payroll tax obligations (e.g. lodging returns).
From 1 July 2025 (when the amnesty ends) all dental clinics must comply with their payroll tax obligations and start paying payroll tax on payments to contracted dentists (unless an exemption applies).
Also consider…
- Find out how to register for payroll tax.
- Learn about lodging payroll tax returns.
- Read about payroll tax exemptions for contractor payments.