30 June 2025
Payroll tax update June 2025
ADAVB is pleased to confirm that following sustained engagement with both sides of government, Shadow Treasurer James Newbury has pledged that a future Liberal–National Coalition government would scrap payroll tax on health professionals, describing it as a “health tax on GPs and allied health professionals” in his May 2025 budget-in-reply speech. After meeting with Mr Newbury today, ADAVB can confirm that dentists will be included. This announcement signals a clear intention to reverse the application of payroll tax to health-related service arrangements, if the Liberal-National Coalition government were to be elected in 2026.
Current Government position
In contrast, on 6 June 2024, the Victorian Treasurer reaffirmed in Parliament that no new payroll taxes have been introduced, but that under existing laws, certain service arrangements—such as those commonly used in dental practices - may be subject to payroll tax. We have continued to express concern to government at this lack of certainty for our members, and the importance of an amnesty on back taxes and penalties.
What you can do:
- Review your current service agreements with legal or financial advisors;
- Stay up to date with further ADAVB communications.
We will continue to strongly represent your interests and will provide further updates as more information becomes available.
Ms Ilsa Hampton
CEO Australian Dental Association Victorian Branch (ADAVB)
