02/04/15 20:29 Filed in: Contracts
Since this financial year VMO contracts (in NSW) can only be signed in the doctors own name (and the doctor has to be registered for GST) or in the name of a practice company, provided the doctor is the sole director/shareholder/employee. Trusts are not accepted anymore as a party, but payments can still be made into trust bank account. In this situation the doctor should still register for GST in their own name.
This can have different consequences for the doctor’s tax and financial planning, depending on the structure of the practice.
If your VMO contract comes up for renewal in the near future I suggest you contact us to see if we need to plan for some changes. In most cases, if you practice through a trust, we can solve the problem by grouping your personal GST and trust GST together, but we need to apply for permission with the ATO, which may take some time.
Where you change from a sessional to a fee-for-service contract (or the other way round), please also check with us if that affects your personal tax planning, as your superannuation situation will change, which in turn may have an impact on any personal contributions you make.