Queensland to abolish GP payroll tax

Queensland has become the first jurisdiction to permanently exempt GPs from payroll tax.
 
The announcement has led to widespread celebration among the state’s GPs, who have spent years advocating for the exemption.
 
The Queensland Government’s promise, revealed on Wednesday, will exempt GPs from payroll tax, if re-elected at this month’s state election.
 
It follows the same commitment from the state’s Liberal National Party last month and means that no matter which major party win the election, Queensland GPs will not be stung by the tax.
 
Queensland GP and immediate past RACGP Vice President and state Chair, Dr Bruce Willett, said the announcement is the result of years of hard work and sustained advocacy from the state’s doctors.
 
‘This is great news for GPs, but particularly great news for patients who would ultimately have had to absorb the cost and have to pay,’ he told newsGP.
 
‘We did see the Labor Government introduce significant concessions about 18 months ago, and even though this was great news, it was administratively extremely burdensome.
 
‘But now, practices will be spared of the significant cost and patients will be better off.’
 
Last year, the Queensland Government became the first in Australia to announce an amnesty for eligible medical centres.
 
That amnesty meant eligible practices in the state were not required to pay payroll tax on payments made to contracted GPs up to 30 June 2025, and for the previous five years.
 
But now, Queensland Treasurer Cameron Dick has confirmed that, if elected, Labor will legislate to automatically exclude GPs from the tax.
 
At the same time however, he told The Courier Mail that ‘there has never been or was there ever going to be a “patient tax” on Queenslanders’.
 
‘Two years ago, a New South Wales court case found that medical centres should pay payroll tax for GPs,’ Mr Dick said.
 
‘Our government put in place an amnesty and a public ruling that made it clear doctors would not have to pay payroll tax.’
 
Despite this, Dr Willett said the looming threat of the tax grab has created ‘long-term concern’ for GPs, who are now breathing a collective sigh of relief.
 
‘This is brilliant, brilliant news because the thing that we have said consistently is that practices do pay payroll tax and this is a new interpretation of the law,’ he said.
 
‘Ultimately, it will cost the states more than it will earn because it will increase the presentations to emergency departments and lead to more ambulance ramping – it’s a retrograde step.’
 
Queensland’s decision follows significant advocacy efforts from the RACGP and the nation’s GPs to scrap the tax.
 
GPs have already reported receiving tax bills of up to $5 million, fearing widespread practice closures, and having to pass on the rising costs caused by the tax to their patients.
 
The threat of the tax has been so impactful that doctors have considered packing their bags in search of better conditions if their own state does not offer exemptions.
 
According to a previous newsGP poll, 35% of respondents said they would consider moving interstate if that region offered more favourable payroll tax requirements.
 
Dr Willett is now urging other state and territory governments to follow Queensland’s lead, saying that if its State Government can make the change, others can do it too.
 
‘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.
 
The Queensland election will be held on 26 October.
 
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payroll tax practice closures Queensland Queensland election RACGP advocacy