Under the NTCER GPT1/ PRRT1 and GPT2/ PRRT2 Registrars are required to be released from your practice for education with their College.
The registrar is required to be paid at the base rate for this time.
The common error that occurs here is that practices pay their registrar a full-time base salary and then also add the base salary for the education day.
This means the registrar ends up being paid twice for the same day. Once you have paid your registrar for the day/ hours they are on educational release, there is nothing more to pay.
GP registrars are entitled to access leave in advance, but not more than what would be accrued in any six month block. In this scenario, the registrar was entitled to pro rata six months, which translates into 5 days personal (sick) leave and 10 days annual leave.
Leave in excess of these amounts is purely a business decision, but we would recommend additional leave being treated as leave without pay to manage the risk of overpayment should a registrar terminate their contract earlier than expected.
If the employment agreement is terminated early, the employer is entitled to deduct overpayments from the registrar’s final payment.
All documentation should be provided in reconciliation of the final payment to ensure transparency. If in doubt, we encourage you to seek professional accountant assistance to finalise termination payments.
If you are paying your registrar above the minimum rates outlined in the NTCER, you need to be mindful of the issues you may be creating for yourself, the practice and quite importantly the registrar themself in the long term. While you may pay vocationally-registered GPs 60+% of billings, most commonly this is done as a tenant arrangement, meaning you then don’t have to pay for:
→ Superannuation (10.5%, increasing to 11% in July 2023)
→ Payroll Tax – varies state by state (e.g. VIC = 4.85%)
→ Workers Compensation Insurance – varies by state and size of payroll (eg 0.5%)
→ Annual Leave (7.69%)
38hr/wk x 52 weeks = 1,976 hours annually, 38 x 4 (wks leave) = 152 hours leave annually, (152/1976) x 100 = 7.69%
→ Sick Leave (3.84%)
38hr/wk x 52 weeks = 1,976 hours annually, 38 x 2 (wks leave) = 76 hours leave annually, (76/1976) x 100 = 3.84%
If your registrar is getting 60+% of their billings and then your practice has to cover additional employment on-costs, it is unlikely you will have anything left to cover your practice costs.
Consider also the scenario should you later contract this same registrar once they’re fellowed. To meet the business’ responsibilities of achieving a profit, it’s unlikely you will be able to offer them more than 65% ongoing as a tenant GP. Since this is so close to what they have negotiated as their percentage while training, it is impossible to avoid disappointment when this percentage is no longer accompanied by the sick leave, annual leave, superannuation, workers compensation insurance, etc enjoyed as an employed registrar.
The NTCER sets out the minimum you need to pay your registrar. This is a base line from which you have the flexibility as a business to offer more, but only if feasible in terms of sustainability.
*These percentages are demonstrative only and should not be applied to the calculation of your registrar’s payroll.
Date reviewed: 16 April 2023