Super Clinic owners unhappy with tax

Owners of the new GP Super Clinics who are being given millions of dollars in government grants are disgruntled that the grants are being taxed.

The owner of the $1m super clinic in the southern rural NSW town of Narrandera, who has been awarded a share of $528m from the government, is complaining she has been hit with a tax bill on the grant, according to reports in The Australian.
She says she is awaiting a private ruling from the tax office following the $380,000 bill.

This comes despite the Federal government stating in its Super Clinic guidelines that both these grants and the Primary Care Infrastructure Grants would be treated as income, and therefore open to taxation.

Each of the 64 Super Clinics being built across the country are being given a share of $528m in grants.

Meanwhile GPs receive a share of only $64.5m to upgrade their practices through the Primary Care Infrastructure Grants, with a choice of $150,000, $300,000, or $500,000 grants.

Around 240 clinics were shortlisted to negotiate a funding agreement last year, with another round of grants to be allocated this year.

Applicants to the Primary Care Infrastructure Grants are being warned “to carefully consider the likely taxation treatment of any funding provided by the Commonwealth as part of this Program, prior to submitting an application.”

More information is available from the Australian Tax Office website.