RACGP welcomes Victoria payroll tax progress

Victorian general practices will be given retrospective exemption from payroll tax – a long-awaited change which the RACGP says will keep clinics open.
 
Announced late on Wednesday, the decision follows extensive negotiations between the RACGP, peak health bodies, and the Victorian Government. 
 
Under the new plan, all Victorian general practices will receive an exemption from any outstanding or future assessment issued for payroll tax up to 30 June this year, according to the state’s Treasurer Tim Pallas.
 
A further 12-month exemption from payroll tax, through to 30 June 2025, will be available for any general practice which has not already received advice and begun paying payroll tax on this basis.
 
The State Government also announced an exemption from payroll tax for payments to contractor GPs and to employee GPs for providing bulk-billed consultations from 1 July 2025.
 
RACGP Victoria Chair Dr Anita Muñoz welcomed the reforms.
 
‘The prospect of retrospective tax bills on GPs was a source of enormous stress for many general practice teams and their communities,’ she said.
 
‘We are grateful the Victorian Government has taken retrospective taxation off the table and has worked with us to find a middle-ground solution. This move will help keep local GPs’ doors open. 
 
‘GP practices now have the certainty we’ve been asking for and can plan for the future.’ 
 
The RACGP said it is committed to continuing its negations with the Victorian Government on the finer details of the change and will work together to educate and inform its members and the community about how it impacts them.  
 
The change comes amid mounting pressure on the Victorian Government to introduce concessions for GPs and practices, with almost every other state already acting.
 
New South Wales, South Australia, Queensland, and the Australian Capital Territory have already announced amnesties or concessions, while Western Australia has confirmed it will not make payroll tax changes.
 
A recent newsGP poll revealed more than one-third of respondents would consider moving interstate if that region offered more favourable payroll tax requirements.
 
Mr Pallas said the State Government had worked closely with the primary care sector to make a decision which could best support them.
 
‘We’re making these long-term changes to provide certainty to general practice businesses and support more bulk billing for Victorians,’ he said.
 
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