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RACGP demands payroll tax reform to safeguard patient care
GPs are calling on the next Victorian Government to fully exempt GPs from the tax, warning the measure threatens clinic viability.
Victorian GPs Dr Martin Sia and Dr Aadhil Aziz.
GP Dr Martin Sia has spent more than 30 years establishing a network of nine general practices across Victoria, but as the threat of payroll tax looms, his concern over their future is rising.
With the Victorian Election on the horizon, Dr Sia is speaking out for change, saying the state must provide a full payroll tax exemption for its GPs.
‘This is definitely a new tax that is concerning not only my business, but also a lot of GPs,’ he said.
‘This tax also increases costs as well as stresses to GP operators and is something that is ultimately going to affect the patient’s outcome – it’s going to increase costs, which is not good for healthcare in general.
‘With the payroll tax and all the added bureaucracy, I think it would be very difficult to start a GP business, and I feel sorry for the next generation.’
The payroll tax reforms are one tranche of the RACGP’s Victorian Election priorities, released on Thursday, as the college calls on the next State Government to address a healthcare system facing growing demand, rising rates of chronic disease, and increasing pressure on hospitals.
RACGP Victoria Deputy Co-Chair Dr Aadhil Aziz said the college’s message is simple: ‘the next Victorian Government must act now to strengthen general practice or patients will pay the price’.
‘Practices are facing rapidly rising business costs and taxes, at the same time, we are seeing increasing demand from an ageing population with more complex health needs,’ he said.
‘Payroll tax has become one of the biggest threats to the sustainability of general practices in Victoria. If we want Victorians to see a GP when they need one, general practice has to be financially suitable.
‘Most general practices are small businesses and run on very thin margins of 2–3% – payroll tax on GPs is a new cost and is threatening to tip some practices over the edge.’
As well as calling for payroll tax reform, the RACGP wants the next Victorian Government to:
- allow GPs to prescribe oral isotretinoin (sold as Roaccutane) for severe acne
- fund the cost of medicines for children in foster and kinship care
- scale incentives and mentorship support for GPs who provide medication assisted treatment of opioid dependence
- reinstate the Chief General Practice Adviser position to ensure general practice expertise is represented within government and health system decision making.
Since 1 July, Victorian GPs have been exempt from payroll tax for wages paid or payable to GPs
in relation to bulk-billed consultations.
Earlier this month, the
Victorian Coalition announced it will exempt GPs from paying payroll tax if it is elected to State Government at the 28 November election.
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