What is a Tenant Doctor?
A Tenant Doctor™ arrangement is a model in which a medical practitioner conducts their own independent practice from premises occupied by a Facilities Service Provider. The Facilities Service Provider supplies administrative services. The practitioner is not an employee or contractor of that entity. The practitioner pays for premises and administrative support under a service agreement.
Whether a Facilities Service Provider is liable for payroll tax turns on the facts of the arrangement and the legislation and rulings in the relevant State or Territory. Wording in a contract is not enough on its own.
We are exclusively licensed to use the Tenant Doctor™ trademark in legal documents within Australia.
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Key Characteristics of a Tenant Doctor Arrangement
Understanding these elements is critical for payroll tax compliance
Operational Independence
The Tenant Doctor operates autonomously, managing their own patients, clinical decisions, and practice operations independently from the service entity.
Service Entity Relationship
A clear contractual arrangement with the service entity for premises rental and administrative support, not employment or contractor status.
Taxation Implications
Where the arrangement is genuine and correctly documented, the Facilities Service Provider entity may be deemed not eligible for payroll tax on amounts paid to independent practitioners. That outcome is fact-specific. It is not automatic.
Privacy Compliance
Clear delineation of data responsibilities and privacy obligations between the practitioner and service entity.
Why Tenant Doctor Arrangements Matter
The distinction between a Tenant Doctor and other engagement models is crucial for payroll tax compliance. Recent audits and cases have highlighted the importance of proper structuring.
Medico-Legal Benefits
A correctly documented Tenant Doctor™ arrangement can separate the practitioner's clinical practice from the Facilities Service Provider's administrative services. That can support a payroll tax non-eligibility analysis and can make each party's medico-legal responsibilities clearer. It does not remove clinical responsibility from the practitioner, and it does not guarantee any payroll tax outcome.
To Establish a Compliant Arrangement:
- Draft Clear Agreements: Service agreements must clearly establish the tenant relationship, not employment or contractor status.
- Separate Branding: The practitioner should maintain distinct professional identity and branding where appropriate.
- Fee Structures: Rental and service fees should reflect genuine arm's-length commercial arrangements.
- Operational Practices: Day-to-day operations must demonstrate genuine independence in clinical and business decisions.
Risks of Non-Compliance
Failure to structure agreements correctly exposes the Facilities Service Provider entity to significant risks:
How Hamilton Bailey Can Help
When properly structured, a Tenant Doctor™ arrangement is directed at the Facilities Service Provider being deemed not eligible for payroll tax. We draft and review the documents. We do not guarantee an assessment outcome.
Service Agreement Drafting
Our Tenant-Doctor Service Agreements are carefully curated to meet commercial and compliance requirements.
Compliance Review
We review existing arrangements and provide advice on restructuring for compliance.
Ongoing Support
Annual subscription service with legal, accounting, and compliance updates.
Related Information
Learn more about payroll tax and medical practice law
Unsure About Your Compliance?
If you're unsure about compliance, seek specialist legal advice. Contact Hamilton Bailey for streamlined support with your Tenant Doctor™ arrangements.