‘It’s a lose-lose’: GPs ramp up payroll tax fight

South Australian GPs have armed clinics with posters and petitions, as the fight against payroll tax changes gains momentum.
 
Launching its new campaign at Elizabeth Family Health Care on Monday, the RACGP’s SA Faculty is calling for ‘immediate’ State Government intervention to scrap the tax.
 
In its place, the college would like to see clarification that independent GPs are fully exempt from payroll tax liability, and that no payroll tax is added to patients’ fees paid to independent GPs for their services.
 
Describing it as a ‘last stand’, the campaign warns patients payroll tax change will lead to paying more for a GP visit, make it harder to find a bulk-billing GP, and could lead to widespread practice closures.
 
The faculty is also pleading with patients to sign an RACGP petition launched last year, which has already gained more than 7400 signatures.
 
The campaign’s launch garnered widespread media attention, as the potentially crippling tax continues to threaten the nation’s healthcare sector.
 
RACGP SA Chair Dr Sian Goodson told newsGP if permanent change is not made, practices will be forced into putting up their prices, and it will be patients who will suffer.
 
‘Practices will not be able to absorb the extra cost margin,’ she said.
 
‘Prices will go up at a time when we’re in a cost-of-living crisis, and we’ll also see bulk billing decimated because it will become unviable.
 
‘It’s going to affect many practices in such a way that they won’t be able to stay open, and as a result of that, patients aren’t going to have access to their GP, it’s going to be more expensive, and they’re going to go to overcrowded emergency departments.’
 
The RACGP’s calls come after the SA Government introduced a statewide amnesty last year, as work began on a long-term payroll tax solution.
 
However, despite the amnesty deadline of 30 June fast approaching, a permanent solution is yet to be offered.
 
‘GPs have been advised by their lawyers and their accountants that they’ve been doing the right thing, but now they’re being told that suddenly from 1 July they’ve got this enormous tax bill to pay,’ Dr Goodson said.
 
‘GPs are really worried; it’s a very stressful time and it’s distracting all GPs from doing their usual good work of looking after patients.
 
‘The other big consequence I’m hearing from GPs in the older age bracket is them saying, “well, if this comes in, I’m just going to finish off, I’m going to retire”, so I think that’s also going to really impact our workforce.’
 
The RACGP is a key part of ongoing payroll tax discussions with several states, most noticeably in Victoria as it works to secure a deal with the State Government.
 
Recent HotDoc data revealed 95% of responding Victorian clinics plan to increase patient fees by an average of $12 per appointment in response to any tax changes.
 
Meanwhile, just 28% of patients would continue to see their regular GP if fees increased.
 
Dr Goodson said a grassroots approach is now needed to create change, calling on all GPs to get involved.
 
‘This campaign is vitally important, so what we need is GPs to encourage their patients to speak up now about this, to sign the petition, and we need that patient voice to be really loud and clear to the Government,’ she said.
 
‘We need the Government not just to hear from GPs, but to hear from the patients and the public as well.
 
‘Whatever money the Government raises from this tax grab from general practice is just going to be wiped out by the increased cost they will have to spend in the emergency department, so it’s not even going to be a benefit to anyone – it’s a lose-lose.’
 
Dr Goodson said she is hoping to arrange a meeting with South Australia Premier Peter Malinauskas to discuss possible solutions.
 
In New South Wales, a year-long payroll tax amnesty is due to end in August this year, while in the Australian Capital Territory, the concession will last until June 2025.
 
The Tasmanian Government has confirmed ‘we’re not making any changes to current circumstances’, while the West Australian Government also agreed to no changes.
 
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bulk billing payroll tax South Australia