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Payroll tax relief for NSW GPs treating veterans
In a move welcomed by the RACGP, the State Government has waived the tax on the care of veterans with a Gold, White or Orange DVA card.
While the RACGP has called for payroll tax to be scrapped outright, it has welcomed the move to waive it for the care of veterans in NSW.
GPs in New South Wales can now provide care to eligible veterans without taking on an ‘unsustainable’ financial burden after an amendment to the state’s payroll tax was greenlit by parliament.
The bill, which was passed on 22 November, was applauded by the RACGP and will abolish payroll tax on the care veterans receive from GPs.
The change is an extension to the state’s payroll tax rebate for GPs and includes services billed to veterans with a Gold, White or Orange Department of Veterans’ Affairs (DVA) card.
It will be applied retrospectively to 4 September 2024 under NSW’s $189 million Bulk-Billing Support Initiative, which was introduced in its 2024–25 Budget.
RACGP NSW&ACT Chair Dr Rebekah Hoffman said the change was brought by GPs speaking out, saying it had ‘become financially unviable to provide care to veterans’ after NSW introduced payroll tax on independent GPs this year.
‘Veterans usually receive bulk-billed care from GPs, but their Medicare DVA rebates don’t cover the full costs of providing their care,’ she said.
‘The extra payroll tax imposed on top of this was unsustainable – putting access to essential healthcare for veterans at risk.
‘These changes ensure ongoing access to essential GP care for veterans in NSW, and that the GPs and practices providing this care can do so sustainably.’
NSW Finance Minister Courtney Houssos said these changes will further strengthen the Bulk-Billing Support Initiative.
‘This will reduce cost pressures on clinics which are providing important medical care to our service men and women and give veterans greater access to affordable healthcare,’ she said.
‘The Bulk-Billing Support Initiative is the first time the State Government has made a strategic investment to support bulk billing, highlighting the Minns Labor Government’s commitment to relieving cost-of-living pressures.’
The NSW Government has previously agreed to no retrospective tax, and to an exemption tied to general practices meeting bulk-billing thresholds, as the RACGP issued strong warnings that without this there would be widespread practice bankruptcies and closures.
Those thresholds involve ongoing payroll tax rebate for contractor GPs in practices with bulk-billing rates above 80% in metropolitan Sydney, and above 70% in the rest of the state.
According to a previous newsGP poll, 35% of respondents said they would consider moving interstate if that region offered more favourable payroll tax requirements.
Queensland is the first jurisdiction to officially scrap any payroll tax on GPs, and there are calls for other states and territories to follow suit.
Queensland GP, past RACGP Vice President and state Chair Dr Bruce Willett has urged other state and territory governments to follow Queensland’s lead.
‘The question has to be asked of the other state governments, particularly New South Wales and Victoria, why are they still pursuing this tax on Medicare for patients?’ he asked.
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