GPs slam Victoria’s ‘$10 million bandaid’

The RACGP has welcomed a $10 million promise to better support Victorian GPs but been left disappointed by the Government’s ongoing lack of action around providing payroll tax certainty for general practice.
 
The Victorian Government handed down its 2024–25 State Budget on Tuesday, which includes new supports for GPs through a co-designed grant program.
 
This funding of $10 million over one year will see the program rolled out to ‘support provision of primary healthcare’ by GPs.
 
But the funding boost comes as the state’s GPs continue to be threatened by payroll tax changes, with Victoria the only government yet to introduce an amnesty period or rule out the reform.
 
RACGP Victoria Chair Dr Anita Muñoz said this State Budget will only worsen the cost-of-living crisis, labelling it a ‘huge disappointment to GPs, practice teams and our patients’.
 
‘It’s like putting a bandaid on a patient who’s lost both their legs,’ she said.
 
‘The Government knows practices can’t afford the state’s extra payroll tax, and neither can their patients. 
 
‘Victoria’s Patient Tax will be devastating for our health system. When people can’t afford care, they get sicker, and we’ll see more Victorians forced into the state’s overflowing hospitals, which will rapidly blow out the State Budget.’
 
The RACGP has teamed up with the Primary Care Business Council (PCBC), and the Australian GP Alliance (AGPA) to once again urge Victoria’s Premier to intervene on payroll tax.
 
If the state does plough ahead with tax grab, recent newsGP surveys suggest just 3% of practices would be able to absorb the costs of extra payroll tax on independent GPs, and 78% would have to raise fees.
 
Additionally, 35% would consider moving interstate for favourable payroll tax settings. 
 
Together, the three bodies are calling for the Government to rule out retrospective collection of payroll tax liabilities, to clarify that patients’ fees paid directly to a GP for their services will not be subject to payroll tax, and for a compliance period to allow practices to adjust.
 
PCBC President Dr Ged Foley said the State Government has wasted a ‘golden ticket chance’ to address cost of living pressures and their impacts on healthcare.
 
‘Instead, they’ve ensured going to the doctor will get more expensive, if you can find a local GP with the doors still open,’ he said.
 
‘Victorians should be prepared for further crowding at hospitals and local GPs to be at breaking point.’
 
Last month, Federal Health and Aged Care Minister Mark Butler added his voice to growing calls for state governments to reverse their payroll tax grabs, saying he is ‘very worried’. 
 
Victoria Treasurer Tim Pallas previously committed to consider using ex-gratia powers to help any general practices that have been impacted by retrospective payroll tax bills.
 
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