News
Queensland GPs immediately exempt from payroll tax
The RACGP says the state is setting a precedent for others, after draft laws were introduced into Parliament on Thursday to abolish the tax on GPs.
A newsGP poll revealed more than half of respondents said they would have to increase out-of-pocket fees by more than $20 if a payroll tax was introduced.
Queensland’s GPs and practices will finally free from payroll tax, after the State Government rolled out immediate exemptions on Thursday.
The new Queensland Government has now introduced draft legislation into Parliament which, if passed, would abolish the tax for GPs in the state.
To assist GPs while the laws are being debated in the Parliament, which will continue into 2025, it also announced a new public ruling under which an exemption will be applied retrospectively from 1 December 2024 to ensure GPs can benefit straight away, even before the laws are passed.
This exemption is not subject to bulk-billing thresholds and includes employed and contracted GPs, and general practice registrars.
Introducing the amendments into Parliament, Queensland Treasurer David Janetzki said the changes were designed to ‘safeguard access to local general practitioner services across the state’.
‘The bill amends the payroll tax act to provide that wages paid or payable by medical practices to general practitioners will not be subject to payroll tax,’ he said.
‘This will provide the medical industry with certainty about the treatment of these wages for payroll tax purposes going forward.
‘The RACGP has praised this initiative to make general practitioner care more affordable for all Queenslanders.’
RACGP President Dr Michael Wright applauded the move and agreed that it will make care more affordable for Queenslanders.
‘It’s great to see common sense prevail,’ he said.
‘We need national consistency in this issue around payroll tax, and I’m very pleased that Queensland has taken the lead.
‘Other states and territories should follow to guarantee access to high quality and affordable general practice for all Australians.’
The move comes following election promises from both of Queensland’s major parties in October, cementing its position as the first state to rollout a payroll tax amnesty.
It is the latest in several payroll tax changes occurring across Australia following a hard-fought, years-long battle from the RACGP and GPs.
Most recently, Victorian Government announced that its GPs will soon be exempt from payroll tax for wages paid or payable to GP for bulk-billed consultations from 1 July 2025.
The RACGP is also waiting to see the Australian Capital Territory’s Chief Minister Andrew Barr follow through on his election commitment to exempt income earned by GPs for bulk-billed services from payroll tax liabilities from 1 July 2025.
Other states and territories have also introduced a range of changes, amnesties and exemptions for the ‘patient tax’ after the RACGP warned it would lead to widespread practice closures and impact patients’ access to care.
RACGP Queensland Chair Dr Cath Hester welcomed the State Government acting on the RACGP’s calls to abolish payroll tax on GPs
‘General practice care is essential for the health and wellbeing of all Queenslanders, and for reducing pressure on Queensland’s hospitals and ambulances,’ she said.
‘It’s critical that general practice can thrive in Queensland to meet patient needs today, and in the future.
‘This will come as a big relief for practice owners, GPs and our patients who value the relationship they have with their GP highly.’
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