Medical practices came under the spotlight again over Payroll Tax obligations following the NCAT decision in Thomas and Naaz Pty Ltd v CCSR [2021] NSWCATAD 259, which was handed down on 3 September 2021. The Tribunal held that the payments made by the medical practice service entities to the doctors engaged under Service Agreements were “wages” for the purpose of payroll tax. This is notwithstanding the fact that the payments represented the doctors’ own Medicare billings collected by the service entities on their behalf. As a result, Thomas and Naaz Pty Ltd was liable to pay $795,292.95 for payroll tax assessments issued by the Commissioner of State Revenue for the period from 1 July 2013 to 31 March 2018.