Welcome

Happy Summer break: A Brothel Owner, A
Buddhist And A GP Practice Owner Walk
Into A Bar…

We hope everyone enjoys a fun, restful, and well-deserved break.

Thank you to all our subscribers. We really appreciate your feedback and ideas for future articles.

We hope you appreciate our final and unique “deep dive” newsletter of the year.

Post-COVID-19, it has been an enjoyable yet tiring year for everyone. 

We have at least enjoyed the freedom of no more mandatory masks and lockdowns.

We hope you will find in this edition that a simplified and positive solution exists, amongst the plethora of taxation and industrial legal changes affecting all practices and practitioners in Australia.

Practice Prediction: Unprecedented Tax Audits and New Regulation

Sadly, to pay back the COVID-19 government debt, practitioners and healthcare facilities have been confronted with an unprecedented number of contractor payments, payroll, and income tax audits. 

These are expected to experience exponential growth, due to preventable non-compliance.

The predicted threat to practices is the introduction of the new Federal Australian Tax Office Contractor Rulings on December 6, 2023. Regardless of size, this affects all group practices in Australia.

The 7th December 2023 Fair Work independent contractor laws have added further stress criminalising underpayments in a stressed-out healthcare system.

Fair Work “Regulated worker” laws are a triple whammy. 

These new Federal “Independent Contractor” laws attempt to deem contractors as employees. These “employee-like” duck test laws will apply to your arrangements.

As we have been saying for some time, if your overall day to day operating arrangements do not walk the talk, you may have a serious problem.

It does not matter how much money you have or how big you are, clearly their lawyers, accountants and advisers are not getting it right. It is time to get back to basics.

No one appears immune to these and many other employee-like obligations. This includes medical and dental corporate practices listed on the Australian Stock Exchange.

There is a silver lining if you look carefully

Regardless of what the headlines say, we are pleased to report for many small and large practices; it is business as usual.

It is feasible to comply with tax and industrial regulations.

It is evident that many practices have received inadequate guidance or have implemented it poorly. For medical-legal reasons, it is achievable to prevent any unnecessary concern.

We hope this edition will help you relax, allowing you to enjoy your well-deserved break if you’re able to take one.

We wish you all a happy and stress-free 2024!

I wish to thank our readers and silent supporters of our work. 

A special thanks to independent legal firms Lukasz Wyszynski from Hamilton Bailey Lawyers and Steven Polyichanin from Peak Commercial and Tax for assisting us in producing this unique content, which has resulted in over 60 published national articles.

A special shout out to Jeremy Knibbs and the team at the influential The Medical Republic and Health Services Daily, a national medical and health news magazine. 

Most importantly, I want to thank our hard-working staff and loyal clients who make this all possible.

We wish everyone a restful break and thank you all for your service to the community, especially those working over Christmas. 

We look forward to seeing you again in 2024.

Stay humble, hungry, curious, and focused

David Dahm

Editor, CEO &Founder of Health and Life Chartered Accountants and Health Practice Advisers

PLEASE SHARE

We hope you enjoy this last edition of the year. For an independent, unconflicted view, continue reading to learn more about these topics and other related ones. Feel free to share this with a friend. Please seek independent legal and and accounting advice on any matters raised in this newsletter.

Closure Times: 

Please be advised that Health and Life will be operating on limited staff from the close of business on Wednesday, the 20th  December 2023, and will return to full staffing on Wednesday, the 3rd of January 2023. During this time, we will have a skeleton crew in place to handle any urgent matters. However, responses to emails and support tickets may be delayed.

In our latest edition, we will cover:

2023 A Year in Review and look forward

  • A Brothel Owner, A Buddhist, And A GP Practice Owner Walk Into A Bar… and what do they all have in common?
  • 14th to 15th June 2024: Wild Health National Conference Burning GP (NSW): Will Payroll Tax Fundamentally Alter The Way Corporates Work And How GPs Work For Them?
  • In Case You Missed It: Tax Harbour Safe Tips and Traps

A Brothel Owner, A Buddhist And A GP Practice Owner Walk Into A Bar… and what do they all have in common?

TLDR: It is the TAXMAN! 

Many of you may be worried about the looming income and payroll tax audits in your practice or Medical Centre.

There is a more sustainable “Swiss Army” solution for a complex problem.

Sadly, many are finding out the hard way that fighting the ATO or Payroll Tax Office is not a popularity contest.

Saying you are a doctor and you save people’s lives is not an excuse to exempt you from tax.

(In a rush? If you want a payroll and income tax-tested and approved solution that avoids any unnecessary medico-legal and tax liabilities for your “Medical Centre” and practitioners, click HERE for our FREE slide deck and our 60-minute webinar.)

The tax office has built a bigger and better digital mouse trap. Amongst all the bad news, strangely, there appears to be a silver lining for patients, practices, and practitioners.

Practitioners can expect more freedom and flexibility with some additional responsibilities.

The Great Emancipation 

Are we about to witness the greatest emancipation of healthcare practitioners in Australia from “Medical or Practice owners” seeking to influence patient care?

We expect some spectacular 2024 ATO wins and losses. Many of the large corporate owners who are being audited remain at a loss for what to do next depending on how well-prepared you are. 

There is no need to worry when you realise that a GP, specialist, or healthcare group practice operates in a similar way to a brothel.

Both sex workers and practitioners receive a percentage of their billings as payment. Recent tax cases involving brothel owners can teach us some valuable lessons. There are many opportunities to make sure you remain compliant.

After all, the same national tax case laws apply to everyone, regardless of whether you are a doctor or a sex worker.

In a recent tax case involving a Buddhist School that was seeking a tax exemption, the case determined that it is significant that one’s initial “intentions” matter. 

We have tax-tested and proven that “How you run your practice matters”

Therefore, if you desire to lawfully and morally escape an expensive audit and contractor tax liability, there is a possibility of finding solace. 

An experienced second opinion may help

The good news is that many practices have found they may have been profoundly misled or misunderstood their arrangements.

We have provided second opinions and have found that their advice may have been misrepresented or made in error to the tax office.

The predominant reason is a lack of experience and awareness of the many long-standing laws and rules established for professional medical and healthcare practitioners since 1978.

You are in a position to legally and correctly ratify your arrangements. 

For greater inner peace and self-awareness, click HERE to access our latest blog and webinars (get the popcorn out). 

To fast track any concern, take our confidential quick self-assessment test.

Stop worrying

We can guarantee you that if you self-educate yourself with our resources and seek help from experienced advisers, you will find there are more exciting opportunities than problems when it comes to owning and running a practice.

If you do get stuck without obligation, make time to have a quick chat with us below. 

Good luck with it.

Wild Health National Conference Burning GP (NSW) 14th to 15th June 2024

GPs taking back control of their destiny. A new type of conference brought to you by The Medical Republic and Health Services Daily.

Burning GP will bring together key leaders and influencers from general practice, government, the technology sector and related allied providers to examine the key issues at hand and map out an alternative and more positive trajectory for the sector and the profession. 

I am humbly honoured to be invited on this influential panel on the future of General Practice for The Medical Republic on  June 14th and 15th 2024, Mantra on Salt Beach at Kingscliff, NSW.

IN CASE YOU MISSED IT!!!

Tax Harbour Safe Tips and Traps

In our recap we cover:

If you are not on our mailing list and would like to subscribe HERE

Health and Life in the national media

2023/22

Visit our media section for a complete list of articles.

A new tax threat looms for practices

Read More

Working at a corporate may get much better (or not)

Read More

Is the payroll tax exemption dream dead?

Read More

My Medicare enrolment is a payroll tax minefield

Read More

Two more states fire payroll tax starting gun

Read More

Keep your zebra, but remove one stripe

Read More

What Buddhists can teach us about payroll tax

Read More

Vic’s pinkie promise to save GPs from payroll ruin

Read More

Payroll tax to eat up bulk billing incentives

Read More

An app to help with payroll tax compliance

Read More

Pathology rent case a blessing in disguise

Read More

Ups and downs of payroll politics and path rents

Read More

E-scripts monopoly ‘a dangerous precedent’

Read More

Apology to Queensland Revenue on payroll tax

Read More

Third-party accounts spell payroll tax doom

Read More

Payroll tax threat may reach non-GP specialists

Read More

NSW not planning to adopt new Qld tax ruling

Read More

Fix payroll situation, get on with life

Read More

Victoria comes to the payroll tax table

Read More

Revenue SA invites you to go tax yourself

Read More

July award wage increase danger for practices

Read More

Practice software could ping you for payroll tax

Read More

Budget a ‘good start’, but has GP dial moved?

Read More

Tax liability warning on GP accreditation standards

Read More

RACGP’s new fees means-tested on total income

Read More

The RACGP/AMA Mexican tax standoff won’t work

Read More

RACGP’s new fees means-tested on total income

Read More

Tax liability warning on GP accreditation standards

Read More

Budget a ‘good start’, but has GP dial moved?

Read More

Practice software could ping you for payroll tax

Read More

Does accreditation make you a payroll tax target?

Read More

Stop calling yourself a medical centre

Read More

Thomas and Naaz ‘got too many things wrong’

Living with the payroll tax ruling

Read More

A holiday isn’t a get-out-of-payroll-jail-free card

Read More

Temporary tax reprieve for Queensland GPs

Read More

The payroll tax media storm is breaking things

Read More

Make doctors smaller targets for lawsuits

Read More

Qld payroll tax ruling is one big bait and switch

Read More

Payroll tax ruling puts a third of GPs at risk

Read More

State takes hard line on payroll tax

Read More

The why and how of getting a tax-friendly doctor website

Why every GP needs their own website

Read More

Is this court case set up to crash pathology rents?

Read More

Waking up to a pathology rent nightmare

Read More

Three signs of an impending GP revolution

Read More

Second supply and other revenue office fetishes

Read More

The best and worst of budget week & our tax horror show

Read More

One-off fixes may get you through the tax crackdowns

Read More

Trusts tax crackdown: hard times ahead for family dog

Read More

Payroll tax blitz to hit patients, not just practices

Read More

PRODA: A new horror show for GPs and practices

Read More

Medicare billing forms may be a tax time bomb for GPs

Read More

Tax ruling means the house isn’t safe with the spouse

Read More

If you’re a voyeur of regional GP and social economics, click here

Read More

Payroll tax problem is going from bad to ugly

Read More

Payroll tax: The Christian Porter option

Read More

NSW GP payroll tax decision and federal vaccine tenders are ‘f&*ked’

Read More

Exclusive: a payroll tax ruling that could ruin practices

Read More

Is ‘consent’ the ‘O-ring’ of Medicare audit?

Read More

Knowledge Base

Since 1992, we have written many useful and practical articles and videos.

They address recruitment and retention, practice viability, taxation, and asset protection, as well as how to run a sustainable and socially responsible healthcare practice.

For our past newsletters, blogs and videos visit our website.

Probono Corner

A measure of a civilized society is when we think we and not just me.

Health and Life are proud supporters of the One Moment Foundation not for profit project International Healthcare Standards and Ethics Board (IHSEB).

We believe in patient-centered healthcare you can understand by using globally commonly agreed healthcare ethics and standards.

David Dahm from Health and Life was awarded for providing over 160 internships over a five year period to students, by Daryl Mc Mahon from Uni SA. 

Health and Life Internships

What many of you may not know is that for many years at Health and Life we have run, with a number of universities, an internship program. They are from law, accounting, business, marketing, and health faculties. Quite a number of interns have been lucky enough to obtain an exciting career with us.

We are always happy to receive feedback, and this is what some of them said. 

What we do at Health and Life

Do you need a recruitment, retention, and succession planning competitive edge?

Health and Life is a national, multi-award-winning, go-to healthcare Chartered Accounting and Health Practice advisory firm.

We are exclusively the largest experienced medical and healthcare practice-focused firm in Australia.

Since 1992 we are an innovative medical and health tax, accounting and health practice advisory firm

We comprehensively help practices that want to grow achieve sustainable growth by ensuring a clear shared vision, strategy, and implementation of shared goals.

If this all gets too hard, you can outsource your concerns to us for a fixed monthly fee, from bookkeeping to the boardroom. See below for examples of our work.

Stay ahead of the game with no more financial stress or mess.

Since 2001 the Doctors Pay Calculator software program is now available in the cloud. This is a service fee legal, tax, accounting and commercial compliance tool. It integrates into your practice management system Xero, MYOB and Reckon.

Tax-compliant template systems and agreements

Since the landmark payroll tax rulings that have affected GP, Medical and healthcare practices around the nation, we have secured over 34 legal exemptions for practices.

For peace of mind, we also can offer access to cost-effective payroll and income tax tested legally prepared FairWork, ATO, Medicare, payroll and income tax and pathology rent templates and systems.

 Succession planning  e-agreements  Pathology Red Book compliant leases  Employment templates  Structures.

This can be ordered piecemeal or bundled into a single peace-of-mind solution for you.

Need a hand?

Contact us for a confidential no-obligation practice review chat.

Stay ahead of the game with no more financial stress or mess.

Not sure where to start?

Not a problem.

We are here to help
P: 1800 077 222
E: pa@healthandlife.com.au
W: www.healthandlife.com.au

We would love to hear from you or a friend who you think may need some useful and cost effective assistance.

“We’re so excited to have you start your journey here with us.
As we learn together, I hope our blog teaches you everything you need to know and more!”

At Health and Life:
It takes one moment to change your life!

For more insights visit our blog.

About me: David Dahm BA (Acc.), CA., FCPA, CTA, FFin, CPM, FAAPM, FAIM, FGLF.

Chartered Accountant, Chartered Tax Adviser, Registered Tax Agent, Former AGPAL Surveyor 10 years of service

David Dahm is CEO and founder of the national medical and healthcare chartered accounting firm Health and Life and global Founder and CEO of the not for profit project the International Healthcare Standards and Ethics Board (www.ihseb.org)

After a serious work related car accident in 1989, and nine operations later I continue to be a patient and provider advocate. I enter my third decade as a national Chartered Accountant for Medical and Healthcare practices in Australia. I am a former 10-year Australian General Practice Accreditation surveyor. I come from a medico family. I have served on the AAPM national Board and was the inaugural national Chair of the Certified Practice Manager CPM post nominal. I continue to provide accounting tax and practice management advice to many practices all over Australia.

You know who you are and I thank you for this real honour and privilege to serve you and your community through you. Note, I am not a lawyer please seek appropriate legal and accounting advice. This information is for general information and discussion only.

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