Payroll tax for Victoria’s GPs to go under Coalition

Victorian GPs will be exempt from paying payroll tax if the Coalition is elected to State Government later this year.
 
The RACGP has welcomed the election promise, calling for other parties to match the Victorian Liberals and Nationals’ pre-election commitment to keep general practice sustainable.
 
Victoria’s Shadow Industrial Relations Minister Brad Rowswell said scrapping the tax is ‘the right thing to do’.
 
‘We know that as the cost of seeing a GP and the cost of accessing primary healthcare increases, we see more and more Victorians heading to emergency departments in state-run hospitals – it’s a false economy and it’s not the best outcome,’ he said.
 
‘We will reduce the cost of going to see a local GP because it’s the right thing for the community and it keeps people healthy in their communities.’
 
Mr Rowswell added that as new taxes are introduced or an existing tax is expanded, ‘someone’s got to pay’.
 
‘Often the people who are hit the hardest are the people who can least afford it,’ he said.
 
RACGP Victoria Co-Deputy Chair Dr Aadhil Aziz said the news is a ‘relief’ for practices already feeling the strain of rising business costs.
 
‘Most general practices are small businesses, and the margins are extremely thin at 2–3%,’ he said.
 
‘On top of this, practices have been hit by skyrocketing inflation and operating costs.
 
‘Together, these pressures are making it harder for practices to stay viable, recruit doctors and keep care affordable for patients.’
 
The RACGP is urging all Victorian parties to follow the lead set by the Queensland Government last year when it passed laws to permanently exempt the state’s GPs from payroll taxes.
 
Both major parties in Queensland had pledged to scrap the tax in the lead-up to the 2024 October state election.
 
The RACGP has previously called on Victorian Premier Jacinta Allan to scrap the state’s payroll tax, highlighting a HotDoc report that revealed it would force 16.5% of practices to close their doors.
 
Further, a newsGP poll showed only 3% of practices said they would be able to absorb the costs associated with GPs becoming liable for payroll tax.
 
Dr Aziz calls the Opposition’s pledge an ‘excellent move’ and a ‘smart one’.
 
‘Scrapping the extra cost of payroll tax will not only protect existing practices and their patients, it will also help to ensure the sustainability of general practice into the future,’ he said.
 
‘If patients can’t see a GP, they’re more likely to end up in our already stretched and costly hospital emergency departments.
 
‘I challenge all parties and candidates who’ll be running in November’s election to offer the same relief for general practices and our patients.’
 
A Victorian Government spokesperson told newsGP it has already changed the system so GPs who bulk bill for consultations are exempt from payroll tax, ‘making life more affordable for Victorians’.

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