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The following definitions may be useful for those in the medical industry when navigating payroll tax.

Fully-funded means that the amount paid or payable for an item of general practitioner (GP) work to a person carrying on a GP medical business (or any associated person) does not exceed the total of the following payments:

  • any Medicare benefit paid or payable for the item of GP work,
  • any amount that has been claimed or may be claimed, in addition to a Medicare benefit, as an incentive for a patient of the GP medical business being bulk-billed,
  • the reasonable cost of any consumable item used to administer a vaccination as part of the item of GP work (such as vaccines, dressing and needles),
  • any amount paid or payable in respect of the item of GP work relating to treatment under Part V of the Veterans' Entitlements Act 1986 of the Commonwealth,
  • any amount paid or payable in respect of the item of GP work as compensation under the Transport Accident Act 1986, the Workplace Injury Rehabilitation and Compensation Act 2013 or the Accident Compensation Act 1985.

A GP medical business is a business in which the services of one or more relevant GPs or one or more relevant prescribed medical practitioners supplies their services, other than at a hospital.

GP work means:

  • work by a relevant general practitioner, which is defined to mean:
    • a medical practitioner registered under the Health Practitioner Regulation National Law in the specialty of general practice; or
    • a medical practitioner specified in clause 1.1.3 of the Health Insurance (General Medical Services Table) Regulations 2021 of the Commonwealth.
  • or work by a relevant prescribed medical practitioner that is of a kind ordinarily performed by a relevant GP.
    • a prescribed medical practitioner is determined by reference to clause 7.1.1 of Part 7 of Schedule 1 to the Health Insurance (General Medical Services Table) Regulations 2021 of the Commonwealth.
    • a relevant prescribed medical practitioner means a prescribed medical practitioner who predominantly performs work of a kind ordinarily performed by a relevant general practitioner.

Medicare benefit has the same meaning as in section 3(1) of the Health Insurance Act 1973 of the Commonwealth.

For more information visit our payroll tax and the medical industry webpage.

Last modified: 30 June 2025

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