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

Ownership type

Description

Individual proprietor

One individual owns the practice.

The declaration must include the:

• full name, and
• signature of the individual owner

Partnership

Two or more partners own the practice.

A partnership is for-profit comprised of 2 or more partners.

Each partner shares in the profits and control of business operations. Partners are jointly liable for the partnership’s debts.

An entity can be listed as the owner. A minimum of 2 partners must be listed as owners.

The declaration must include:

• full name, and
• signature of each partner

Associateship

Two or more associates own the practice.

The associates operate the practice together; however, each associate operated a distinct (entity) for tax and legal purposes.

An entity can be listed as the owner. At least 1 associate must be listed as owner.

The declaration must include:

• full name, and
• signature of each associate

Body corporate

A company owns the practice.

A company is a body corporate 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 body corporate. At least 2 individuals must be listed as owners with a clear position. For example, a director or company secretary.

The declaration must include the:

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

If the company has a sole director who is also the company secretary, this is acceptable if it is clear. Accept the application with only 1 name and signature.

State or territory government or other public body ownership

A body organisation own 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 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

A 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 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 ownership details 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

HPOS updated in error

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

To reverse an accidental HPOS ownership update, a practice owner must provide:

• signed confirmation that there have been no changes to the practice ownership

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

If there is an ownership dispute:

• The payments will be paid into the bank account details registered in PIP Online and/or WIP - Practice Stream Online at the point-in-time date
• The practice must advise of any changes to their practice details. This includes:
• Changes to the practice ownership
• Practice amalgamations
• Changes to the practice bank account details

Relevant parties or practices are responsible for resolving their disputes.

Practices must advise of their 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.

PIP 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

Update the administrator’s details in PIP Online and WIP - Practice Stream.

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 (payment team) will provide 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 signed letters. This must confirm:

• the partnership or associateship is ceasing
• the ownership of the practice is transferring to another entity

Disputes can occur about the:

• transfer of ownership
• division of any assets or liabilities

Escalate any disputes to the 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 is not transferred to the new practice, once it is split from the main location. The practice will get a new PIP and/or WIP - Practice Stream practice ID. It will take approximately 18 months (example: 6 payment quarters) to establish a full SWPE value.

See Practice location amendments for PIP and WIP - Practice Stream for more information.

Ownership change type

Signature requirements

Partial change

Removing an owner

At least 1 owner who is remaining on the practice profile must sign the declaration.

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

Adding an owner

At least 1 owner who is registered on the practice profile 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
• If the company has a sole director who is also the company secretary, only 1 person can sign the form. The owner must identify as the sole director and the company secretary

Note: if the ownership type is body corporate or state/territory government, there is no requirement for the owners signing the declaration on the IP010 form to match the signatories on the sale document.

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 1 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 IP010 form to match the signatories on the sale document.

If sale documents are not available

The practice must 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, or
• the old owners sign and date Question 11 and 13 of the form

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