Change of practice ownership for Practice Incentives Program (PIP) and Workforce Incentive Program (WIP) - Practice Stream 012-10010030

Ownership type

Description

Individual proprietor/ sole trader

The practice is owned by an individual person under their own name. There will be no company details and the ABN will usually have the person’s name listed as the ‘entity name’.

The business is not a separate legal entity from the owner which means the owner is personally liable for whatever happens, including debts.

The declaration must include the:

• full name, and
• signature of the individual owner

Partnership*

*May also be known as ‘other partnership’, ‘general partnership’, limited partnership’, ‘incorporated limited partnership’ or ‘family partnership’

Two or more partners own the practice.

A partnership is a legal relationship of two or more people who together operate a business.

All of the business partners are personally liable for the debts of the business.

A minimum of 2 partners who are owners of the practice must be listed as owners.

The declaration must include:

• full name, and
• signature of each partner

Note: only partners who complete and sign the declaration as a practice owner will be able to notify changes to practice arrangements.

Trust

A trust is a business structure where a trustee carries out the business on behalf of the trust's members (or beneficiaries).

The trustee can be an individual or a company/body corporate and is responsible for everything in the trust.

The Trustee is legally responsible for the operations of the trust and legally liable for the debts of the trust.

For the purpose of PIP and WIP - Practice Stream the trustee(s) are considered the owner(s) of the practice.

To establish a trust, there will be a trust deed. The trust deed identifies who the Trustee(s) are. The Trustees name will usually be before one of the following:

• ATF (as trustee for)
• ITF (in trust for)
• Trustee for

For example:

• ABC Pty Ltd ATF ABC Medical
• Jane Doe ATF ABC Medical

Declaration signature requirements will be determined by the trustee arrangement. If the trustee is:

• an individual:
• full name
• signature of the individual trustee
• a company:
• full name
• signature of at least one director listed in the company extract
• a body corporate:
• full name
• position, and
• signature of a least 2 representatives

Company and Body corporate

A company or other incorporated body owns the practice.

A company or body corporate is registered in Australia under the Corporations Act 2001 and registered by the Australian Securities and Investments Commission.

Decision making is the responsibility of company directors and/or office holders.

An entity must be listed as the practice owner. The company name will generally include ‘pty ltd’ (proprietary limited) or ‘ltd’ (limited by shares).

A body corporate may also be an ‘other incorporated body’ (Inc).

Declaration requirements:

Company:

• full name
• position, and
• signature of at least one representative

Body corporate:

• full name
• position, and
• signature of at least 2 representatives

If the company/body corporate has a sole director who is also the company secretary, this is acceptable if it is clearly indicated at the declaration.

The officers signing the declaration must be listed on the company extract.

Practice staff who are not directors or office holders of the ownership company should not sign the declaration and should not be added as owners.

State or territory government or other public body ownership

A state of territory government or other public body owns the practice.

The government delegates power and responsibility to the body organisation to operate an enterprise on behalf of the state, territory or local government. At least 2 individuals must be listed as owners.

The individuals listed as ‘owners’ must be authorised to act on behalf of the ownership organisation. Practice staff do not generally meet this requirement.

The declaration must include the:

• full name, and
• signature of at least 2 officers of the state/territory government who are authorised to notify practices changes

Local government or ‘shire’ owned practices in rural locations.

The shire can lease the premises to a general practitioner or enter into an agreement with a third party organisation to manage and operate the practice.

The shire must be registered on the practice profile as the owner of the practice. Add the GP or representative of the management organisation as an authorised contact person

The declaration must include the:

• full name, and
• signature of at least 2 officers of the local government (shire) who are authorised to notify practice changes.

Ownership change type

Signature requirements

Partial change

Removing an owner

At least one owner who is remaining on the practice profile must sign the declaration. The owner(s) being removed does not need to sign.

The practice must continue to meet the minimum number of registered owners for its ownership type. See Table 1.

If the practice will not meet the minimum registered owners for the ownership type when an owner is removed, the form must be rejected and returned to the practice.

Adding an owner

At least one owner who is registered on the practice profile must sign the declaration.

All new owners/representatives must sign the declaration.

Full change

The declaration must be signed by the required number of owner(s) who want to be listed as an owner of the practice. See Table 1 for the signatory requirements for each ownership type

If a company operates under a sole directorship, only one person can sign the form. The owner must indicate sole director in the declaration.

Note: if the ownership type is company, body corporate or state/territory government, there is no requirement for the owners signing the declaration on the Practice Incentives Change of practice ownership form (IP010) to match the signatories on the sale document.

If the signatories are different, the owners/representatives signing the IP010 must be listed on the company extract as company directors or officer holders.

Ownership type

Acceptable evidence

Individual proprietor/ sole trader

Evidence is not required.

The ABN will be used to confirm the ownership type in ABN Lookup.

Partnership

A copy of the partnership agreement.

The partners signing the declaration must be listed as partners in the agreement.

Company

A copy of the current ASIC company extract.

The extract must include the names and positions held of all current directors and office holders.

The owner/s signing the declaration must be listed in the company extract.

Trust

A copy of the trust deed.

The trust deed must specify the trustee.

If the trustee is a company/body corporate, a current company extract must also be provided.

The trustee signing the declaration must be listed in the company extract.

Body corporate

A copy of the current ASIC company extract

The extract must include the names and positions held of all current directors and office holders.

The owner/s signing the declaration must be listed in the company extract.

State of territory government or other public body (including Aboriginal Medical Services)

A letter from the Chief Executive Officer (CEO), Board Chair, or equivalent.

The letter must:

• be on organisation letterhead
• confirm by name, the persons signing the declaration are authorised to represent the organisation
• be signed by the CEO, Board Chair or equivalent

Document status

Supporting documentation examples

Acceptable

Only a full change of ownership needs supporting documents to confirm the sale or transfer of the practice.

At least one of the below documents must be provided:

• A copy of the sale contract, including the:
• signatures from both parties, and
• date of sale
• A copy of the bill of sale, including the:
• signatures from both parties, and
• date of sale
• Legal documents - assessed on a case by case basis. Escalate to the LPS for assessment. This must include the:
• signatures from both parties
• date of sale
• Commonwealth Statutory Declaration, if no other legal documents available escalate to the LPS

In addition: a copy of the accreditation certificate must accompany the proof of change of ownership.

If the ownership type is body corporate or state/territory government, there is no requirement for the owners signing the declaration on the Practice Incentives Change of practice ownership (IP010) form to match the signatories on the sale document. The owners signing the declaration must be listed on the ASIC company details.

If sale documents are not available

The practice may provide the following letters:

• a letter from the new owner/s or solicitor, including the:
• signature of the new owner/s or the solicitor
• date of sale
• a letter from the old owner/s or solicitor
• signature of the old owner/s or the solicitor (only 1 old owner's signature is required)
• date of sale

Letters from the old or the new owners can only be accepted if:

• there is evidence from both the old and the new owners which confirms the change of ownership

Unacceptable

The below are unacceptable supporting documents:

• Change of ownership documents from the accrediting body
• letters signed by only the incoming or outgoing owner with no other evidence

Other

Escalate to the LPS.

Type of statutory declaration

Letterhead

Acceptable to support change of ownership?

Commonwealth

Commonwealth of Australia

STATUTORY DECLARATION

Statutory Declarations Act 1959

Acceptable

State or territory

Headed with state or territory, for example: Victoria or Northern Territory

Not acceptable

Ownership status

Criteria

Incorrect ownership details recorded in PIP/WIP-PS Online

To amend incorrectly recorded ownership details, at least 2 of the following are required:

• a signed letter from the correct owner/s
• a signed letter from the incorrect owner/s
• legal documentation confirming the correct ownership
• a signed Commonwealth Statutory Declaration

No ownership details recorded in PIP/WIP-PS Online

Some practices do not have full ownership details recorded in PIP Online due to the way ownership information was recorded historically.

To add the ownership details to the practice profile, practices must provide a letter on practice letterhead confirming:

• the ownership type
• the company name and trading name (not required for individual proprietors)
• the full name/s, signatures/s and positions held of all owners to be listed on the practice profile

The letter must include the practice name and practice ID and must be signed by the CEO, Board Chair, or equivalent.

A copy of the company extract, partnership agreement or trust deed must be attached to confirm the ownership type, and the positions held for the owners/representatives.

HPOS updated in error

Ownership changes made in HPOS will automatically place payments on hold.

To reverse an accidental HPOS ownership update, a registered practice owner must provide signed confirmation that:

• there have been no changes to the practice ownership
• the HPOS updates/changes were made in error

Deceased owner

The executor of the estate must give consent for Services Australia to amend any practice details.

The executor must submit some correspondence. This needs to confirm the:

• writer is the executor of the estate
• date the owner died
• date the practice changed ownership

A letter from a solicitor is needed to confirm the above details.

Note:

• the estate can maintain ownership of the practice. Update the estate holder details in PIP Online and WIP - Practice Stream Online
• the ownership can be inherited. Documents confirming this are needed. Update the details of the person who has inherited the ownership in PIP Online and WIP - Practice Stream

Practice ownership disputes

Services Australia will not be involved in ownership disputes.

Relevant parties or practices are responsible for resolving their disputes.

The PIP and WIP - Practice Stream payments are paid into the bank account details registered in PIP Online and/or WIP - Practice Stream Online at the payment point-in-time date

Practices must advise of changes to practice details through one of the following:

• Health Professional Online Services, up to the point-in-time date
• Submitting the relevant form, within 7 days of the change or at least 7 days before the point-in-time date

If the practice does not do this, payments will continue to be made based on the details recorded on PIP Online and/or WIP - Practice Stream Online at the point-in-time date.

Practice changes include:

• Changes to the practice ownership
• Practice amalgamations
• Changes to the practice bank account details

PIP and WIP - Practice Stream will not recover payments made to an incorrect owner where the changes were not notified in time.

Practice in administration

This is when a practice is taken away from the owner and given to an administrator.

The company can continue to trade as per usual. The company is managed by the administrators rather than the owners.

The administrators must provide a signed letter and supporting documents to confirm they have been appointed. This should include:

• bank account details
• authorised contact persons
• confirmation that the practice is maintaining eligibility for the relevant program(s) and individual incentives

Escalate to LPS. Program Management (Policy team) will confirm the administrator’s details to be updated in PIP Online and WIP - Practice Stream Online.

Practice in liquidation

This is when a practice is insolvent. The owners cannot continue to trade.

A practice is taken away from the owner and given to a liquidator. The practice may trade for a short time while in liquidation, at the discretion of the liquidator.

The liquidator must provide a signed letter and supporting documents to confirm they have been appointed. This should include:

• bank account details
• authorised contact persons
• confirmation that the practice is maintaining eligibility for the relevant program(s) and individual incentives

Escalate to the LPS. Program Management (Policy team) will confirm the liquidator’s details to be updated in PIP Online and WIP - Practice Stream Online.

Dissolution of partnership or associateship

This is when a partnership or associateship own the practice and the individuals share the ownership.

In some cases, these arrangements will cease and the practice may transfer to another entity or individual. The entity or individual may have been part of the original partnership or associateship.

When the ownership is transferred, the owners must submit a completed Practice Incentives Change of practice ownership form (IP010) and evidence to confirm the ownership changes. Evidence may be legal documents or a letter from the previously registered partners. If a letter is provided it must be signed and must confirm:

• the partnership or associateship is ceasing
• the ownership of the practice is transferring to another entity
• details of the new ownership entity
• date of dissolution

Disputes can occur about the:

• transfer of ownership
• division of any assets or liabilities

Escalate any disputes to Program Management (Policy team) via LPS for assessment.

Scenario

Impact on SWPE

A practice undergoes full change of ownership

The new owner is only entitled to the historical SWPE value if the practice’s existing accreditation is included in the sale/transfer of the practice. This will apply even if the original owner establishes a new practice in the same local area.

If the practice is issued with a new accreditation number, it must re-apply for the relevant program/s and establish a new SWPE value. The historical SWPE reference period will begin from the date of sale.

An additional practice branch splits from main practice and is registered in PIP/WIP- Practice Stream as a practice in its own right.

The SWPE value for the additional practice branch location may be transferred to the new practice, once it is split from the main location.

The new owners must submit a Practice Incentive application form (IP001). These applications cannot be submitted online.

See Practice location amendments for PIP and WIP - Practice Stream for more information about splitting branch locations.