Treasurer meeting yields payroll tax progress

A coalition of general practice advocacy bodies will work with the Victorian Government and State Revenue Office on progressing the ongoing payroll tax stalemate, after a ‘positive meeting’ with Treasurer Tim Pallas last Thursday.
 
The RACGP, AMA, Primary Care Business Council, and Australian GP Alliance were all present to discuss the practical application of the controversial tax, as well as its impact on GPs and the broader health system, according to a brief description of the meeting provided by the college.
 
GPs have consistently maintained that the application of payroll tax on tenant doctors will lead to widespread practice closures and rising costs for patients.
 
At Thursday’s meeting, Treasurer Pallas acknowledged these long-held concerns, before going on to establish a working group to better support worried GPs and provide further clarity on the changes. The group will include the RACGP, other peak GP bodies and the State Government and Revenue Office.  
 
He also reiterated his commitment to consider using ex-gratia powers to help any general practices that have been impacted by retrospective payroll tax bills for independent practitioners.
 
RACGP Victoria Chair Dr Anita Muñoz was also at the meeting and said while the group did not reach a solution, it represented a step in the right direction.
 
‘The Treasurer appeared to be genuinely concerned about the threat of general practices closing in Victoria, and definitely concerned about the threat of practices being unable to offer any bulk billing to Victorians,’ she told newsGP.
 
‘This meeting was an opportunity to really outline the nuances in quite a complex situation, and I think it was very helpful for the Treasurer to hear about those nuances directly from the key groups there.
 
‘I feel the Treasurer understands this is a big threat to our industry, that something must change, and if we just maintain the status quo, we are going to see serious and irreversible effects on the health system.’
 
At the meeting, which was also attended by RACGP President Dr Nicole Higgins, the college reiterated its three key requests of no retrospective tax bills, an amnesty period, and for the rules of the tax to be made clear.
 
It 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.
 
Dr Muñoz said it was a relief to see that the messages GPs have been advocating for are being understood.
 
‘If practice becomes non-viable, or practices close, bulk billing in the Australian healthcare system as we know will cease to exist and those changes will be irreversible,’ she said.
 
‘This is not just about general practice now, but the pipeline of general practices in the future.
 
‘This situation is so serious that if nothing new and different is offered, then we are moving towards disaster knowingly, and that is even worse than doing it unknowingly.’
 
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bulk billing payroll tax Victoria