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RACGP welcomes SA payroll tax reform
After months of negotiation, South Australian GPs will be permanently exempt from paying the tax on earnings from bulk billed services.
From 1 July, wages earned by South Australian GPs for bulk-billed services will be exempt from payroll tax, the State Government announced this week.
The new, permanent exemption follows extensive advocacy from the RACGP and its SA faculty over the last 18 months, seeking to ensure ongoing healthcare for the state’s most vulnerable patients.
Adelaide-based GP and RACGP SA Chair Dr Sian Goodson acknowledges that while the exemption is not perfect, it is still a big win.
Dr Goodson said through a series of negotiations, this reasonable middle ground will protect the viability of many practices.
‘Without the exemption, a number of these practices would have otherwise been forced to increase private patient fees enormously to compensate for bulk billing or even close their doors when the payroll tax amnesty ended,’ she told newsGP.
‘This would have led to many more people going to emergency departments instead of appropriately to their GPs.
‘Although [the exemption] is targeting bulk billing, all practices will benefit from this because all practices actually do bulk bill a significant proportion of the services they provide … to the most disadvantaged in our state.’
The decision comes after the SA Government introduced a statewide amnesty last year as it began work on a longer-term solution.
But with that amnesty period due to end on 30 June, GPs previously raised concerns that time was running out.
Dr Goodson said she applauds the efforts of SA GPs in uniting to bring about this week’s change.
‘It’s amazing how well RACGP SA members and Faculty Council have come together, campaigned publicly and caught the premier’s attention,’ she said.
‘This has led to the Government listening to our concerns and coming to the table.’
Late on Wednesday, the Victoria Government also announced payroll tax changes for its state, committing to providing retrospective relief for GPs.
However, Dr Goodson warned that the Federal Government also needs to step up and increase Medicare rebates for primary care services if bulk billing is to remain viable.
‘It’s still very difficult with the current rebate structure to sustain the bulk billing model,’ she said.
SA Health Minister Chris Picton said he hopes the tax relief will give GPs more incentive to bulk bill patients and help more patients access primary care services.
‘We know that South Australians are finding it harder and harder to access a GP, getting sicker and ending up in our hospitals,’ he said.
‘Good primary care means people can stay out of hospital, stay well in the community … ultimately what we need to see is improvement in primary care.’
The payroll tax exemption will apply from 1 July 2024 to all GP practices liable for payroll tax.
This includes practices which successfully applied for the State Government’s existing payroll tax amnesty, due to expire June 30, as well as those practices which have fully met their existing payroll tax exemptions.
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