RACGP fronts Parliament to spruik payroll tax abolishment

The RACGP has spoken with politicians face-to-face to explain the benefits of scrapping payroll tax, outlining exactly what will happen if all states and territories forge ahead with the change.
 
On Thursday, RACGP Queensland Chair Dr Cath Hester joined Australian Medical Association Queensland President Dr Nick Yim in fronting a State Government Parliamentary Inquiry into payroll tax.
 
The investigation comes after the Queensland Government became the first in Australia to permanently exempt GPs from the tax, announcing last year that an exemption would be applied retrospectively from 1 December 2024.
 
Ahead of the change being debated in the state’s parliament, Dr Hester used the inquiry to praise the state for implementing the college’s calls to abolish the tax, saying it was a cause of immense anxiety for GPs.
 
‘I had concerned practice owners contact me, especially those who are nearing retirement to say, “I give up, I’ve had enough, this is too complicated, the State Government doesn’t value my services, I think it’s time for me to retire”,’ she said.
 
‘They didn’t take that lightly – GPs love serving their communities, they don’t want to leave anyone without adequate care, but it was so stressful that it was like the last straw.
 
‘There was a collective sigh of relief when Queensland GPs heard there were proposed amendments to payroll tax, it would be very strongly supported throughout the GP community.’
 
Dr Hester went on to share with the Committee why she believed this issue struck such a cord of alarm within the GP community.
 
‘GPs view the care that they provide as a human right, not as a luxury commodity,’ she said.
 
‘We desire to serve our communities and to provide excellent care at the lowest possible cost, so that health inequity is minimised.
 
‘Our practices often run at less than 5% profit margins and many owners like myself reinvest business profits to help improve our facilities and our provision of care to communities.
 
‘Payroll tax would completely obliterate this operating margin and would be a strong disincentive to work in this manner.’
 
The Parliamentary Committee also asked for Dr Hester’s thoughts on what more could be done to remove disincentives and to encourage GPs to work in Queensland, particularly in rural and remote areas.
 
In response, Dr Hester shared recent RACGP data illustrating the large-scale success of incentives offered in other states.
 
She pointed to incentives offered in Tasmania and Victoria, which have had a direct impact on the number of future GPs moving to the state to train.
 
‘We’ve certainly seen an uptick in the interest and the applications for GP training in those two states,’ she said.
 
‘On questioning our GP trainees, they tell us that those incentives helped them choose a career in general practice, so it’s had a direct effect, and it’s been very positive.’
 
The RACGP has been campaigning for the longstanding exemption for payroll tax for GP and GPs in training to be upheld.
 
The Parliamentary Committee is due to hand down its final report into the inquiry on 7 February.
 
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