SME Recovery Loan Scheme and Payroll Tax

BALLARAT, Australia - Jan. 10, 2022 - PRLog -- On the 15th of December 2021 the Government notified Amended Scheme Rules that expand the SME Recovery Loan Scheme (

Under the SME Recovery Loan Scheme (2022 Scheme expansion), participating lenders will offer loans on the following terms:
  • Government guarantee: 50% of the loan amount
  • Commencement: 1 January 2022 (and ending on 30 June 2022)
  • Loan value: up to $5m
  • Loan purpose: a broad range of business purposes, including to refinance existing debt
  • Loan terms: up to 10 years with repayment holidays of up to 24 months
  • Security: loans can be either unsecured or secured
  • Interest rates: capped at approximately 7.5% (t&c's apply)

The Scheme offers a great opportunity to either refinance existing loans on more favourable terms, or to raise additional funding to support the business.

If you are interested in the SME Recovery Loan Scheme and want to learn more, please get in touch.

Payroll Tax & Service Fee Arrangements

A common set-up for professionals is to operate under a "tenancy & agency model".  This is particularly common in the medical, dental & allied health industries.

Under a tenancy and agency model, the professional enters an arrangement with the operator of a practice to collect fees from clients/patients on their behalf.

The practice then periodically remits those fees to the professional, less a service fee for use of facilities and other services rendered.  For example, access to consulting/treatment rooms and reception/administration services.

A recent NCAT case in NSW has looked at this type of arrangement and has found that Payroll Tax is payable on the amounts remitted to the professional.

This decision reinforces the earlier Victorian Supreme Court decision in the Optical Superstore case that had similar findings.

In particular, the NSW decision dispenses with the view that the Optical Superstore case could be distinguished from typical arrangements due to some of the peculiarities that existed in that situation.

Whilst this is a NSW decision, there is sufficient consistency with the rules that apply in other States and Territories for this to be considered by practices right throughout Australia.

We recommend that practice operators that utilise service fee arrangements review their Payroll Tax obligations.

If you have questions about how your practice may be affected, please get in touch.

Anne Martinez
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Location:Ballarat - Victoria - Australia
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