Payroll tax relief passes Queensland Parliament

New laws have passed through the Queensland Parliament to permanently exempt the state’s GPs from payroll taxes.
 
The State Parliament’s support is the final step in cementing the legal changes, which mean that wages paid by medical practices to GPs are exempt from the controversial tax.
 
It comes after a tax exemption was put in place late last year, applying retrospectively from 1 December, to ensure GPs could benefit immediately, rather than waiting for the laws to be passed.
 
Queensland Treasurer David Janetzki told Parliament the tax’s abolishment was designed to stop families paying more to see the doctor, as well as easing pressure on the state’s hospital system.
 
He said he had heard of Brisbane medical centres preparing to install up to 25 EFTPOS machines to comply with ‘these ridiculous changes’.
 
‘That shows the cost to the industry,’ Minister Janetzki said.
 
‘Practitioners were talking to their lawyers and their accountants and taking on tens of thousands of dollars in costs to rearrange their administrative arrangements.
 
‘General practitioners took on additional costs and compliance burdens.’
 
The abolishment of the tax was an election promise from both of Queensland’s major parties in the lead up to the October election.
 
It is a move welcomed by the RACGP, which has long been calling on all states to scrap the tax.
 
RACGP Queensland Chair Dr Cath Hester previously said that the change will help improve access to affordable GP care for people across the state.
 
‘It also gives general practices certainty that they can remain viable and keep their doors open for people in every community,’ she said.
 
‘Hardworking GPs across Queensland can get on with our job, helping people stay healthy and out of hospital, which also reduces pressure on the states’ health system.’
 
Last year, a newsGP poll revealed more than one-third of respondents would consider moving interstate if that region offered more favourable payroll tax requirements.
 
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