The threshold limit (TLL) for exempt practitioners has been changed to $100,000 for all income earned above the threshold.
This means that those eligible for the GST exemption will be paying a higher GST rate than they otherwise would.
The new threshold will be $150,000 in 2019-20, with a $25,000 increase in 2020-21.
The TLL is calculated by dividing the income of an exempt practitioner by the total income of the eligible practitioners.
The threshold will increase by $25k for each $100k of exemption income earned.
Exempt practitioners earning $100K in 2018-19, 2019-2020 and 2021-22 will pay $125k in 2019 and $125,000 more in 2020.
Excess income will continue to be taxed at a lower rate.
Exemption income can be earned outside of the year.
For example, a practitioner can earn an income of $25K in the previous 12 months, and then claim the exemption for 2018-2019.
However, he or she can also claim the TLL for 2019-2018, claiming the exemption will take effect on July 1, 2019.
If they did not claim the tax exemption for the prior 12 months they would have paid an additional $25.00.
Exceptions to the TLC are those paid in respect of a medical service that provides goods or services that meet specified requirements.
For more information, see Medical services (medical practitioner qualification) and medical service exemption (medical service qualification).
Exempts can earn income from other sources if they are employed by a health care practitioner.
This income can include: GST exempt income paid by a GP, physician or nurse practitioner, as long as the income is used for medical services provided by a person or entity other than the exempt practitioner.