Tasmanian Labor vows against payroll tax, if elected

Tasmanian GPs will not be burdened by a crippling payroll tax if Labor wins the state’s March election, the Opposition party has promised.
 
Labor Leader Rebecca White made the guarantee on Thursday, announcing no payroll tax would apply to a GP if she became Premier.
 
‘Tasmania is one of the only states that has not acted to provide certainty to GPs,’ she said.
 
‘Hospitals are already exempt from paying additional payroll tax for their doctors and we want an even playing field for our GPs.
 
‘In a cost-of-living crisis, this is a simple measure that supports our dedicated GPs and means they do not have to pass on costs to patients.’
 
In response, Premier Jeremy Rockliff said ‘we’re not making any changes to current circumstances’.
 
Tasmania remains one of the only states not to offer clarity on its payroll tax plans, with other leaders already handing down much-needed amnesties or concessions.
 
RACGP Tasmania Chair Dr Toby Gardner said Labor’s commitment is ‘exactly what Tasmania needs’ and is now calling on the state’s other political parties to match.
 
‘This will ensure practices don’t have to increase patient fees, and it will prevent bankruptcies and practice closures – which Tasmania cannot afford,’ he said.
 
‘It will boost the GP workforce in Tasmania by providing certainty of the future viability of practices in our state.
 
‘This will no doubt make Tasmania an attractive home for GPs affected by the payroll tax grab in other states and territories.’
 
The promise comes amid rising concerns over the tax in Victoria, with a recent report revealing taxpayers could be slugged an additional $1 billion if it is rolled out.
 
At the same time, it could cause hundreds of general practices to shut their doors, with the additional costs too much for them to remain sustainable.
 
According to the Victorian Opposition, the tax is now set to face a legal challenge.
 
On Friday, it revealed multiple healthcare clinics have engaged lawyers to challenge compliance notices from the State Revenue Office.
 
The State Liberal Party has slammed the Government, saying the tax grab will cost Victoria more money than it raises.
 
It says data from the Primary Care Business Council (PCBC) and HotDocs found the tax will lead to a $715 million final loss to the State Budget, after accounting for additional hospitalisations.
 
Eastbrooke Medical Centre Director and PCBC member Andrew de Picot described the tax as ‘fiscally destructive’.
 
‘The knock-on effects to the healthcare system in Victoria will be disastrous,’ he said.
 
Last year, Victorian Treasurer Tim Pallas announced tax bills will be waived or reduced for clinics at risk of closure but has yet to address GPs’ pleas for an amnesty.
 
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