Hamilton Bailey's Tenant-Doctor
TM Service Agreements are structured to avoid classification
as employment or contractor relationships.Tenant Doctors
TM generally
do not trigger payroll tax, superannuation (super),
or Fair Work entitlements if the agreements are correctly implemented.
This compliance hinges on
three key factors:
1.
Tax and Legal Safeguards: The agreements align with the ATO’s Safe Harbour provisions, which help
ensure Tenant DoctorsTM are not deemed “employee-like” contractors under tax law.
This avoids obligations like super contributions or payroll tax for the practice.
2.
Accountant Certification: A qualified accountant must verify that the arrangement meets compliance
standards, reducing the risk of being classified as a "sham contract".
3.
Independent Business Structure: Tenant Doctors
TM operate as separate businesses (e.g., through trusts
or companies), billing the practice directly rather than being paid as employees or contractors.
However, this model does not automatically exempt practices from all obligations.
Compliance depends on strict
annual adherence to the agreement’s terms and maintaining an
arm’s-length business relationship.
If the arrangement is misapplied (e.g., exerting excessive control
over the Tenant Doctor’s work), payroll tax
or super liabilities could still arise.
The Doctors Pay Calculator annual compliance package provides on going tax compliant ruling certification.
Visit
Legal and Tax Compliance Advice