LNP Qld payroll tax pledge applauded by peak medical bodies
The medical community has welcomed the Queensland opposition’s move to exempt general practices from payroll tax.
The Queensland opposition has welcomed and supported the commitment to exempting general practices from payroll tax by the Primary Care Business Council (PCBC) and Royal Australian College of General Practitioners (RACGP).
The PCBC said this would be a “huge win” for patients and doctors across the state.
This pledge from the Liberal National Party (LNP) of Queensland has come after the NSW Court of Appeal deemed independent practitioners as employees for payroll tax purposes in 2023.
The LNP announced that the party would work towards GPs not being subject to payroll tax if elected.
Before this, GPs were not subject to payroll tax because they worked independently despite Australian practices having to pay payroll tax on their employees for tax purposes.
PCBC president Dr Greg Foley said the pledge by the opposition would give GPs and clinic operators the certainty they needed.
“As the representative body for more than 40 per cent of general practices across Australia, the PCBC has advocated for a sensible approach to payroll tax nationwide and we commend the Queensland opposition for leading the way with a policy that supports a strong primary care network,” Foley said.
“This commitment gives Queensland doctors the certainty they need to continue delivering the standards of affordable care that patients can rely on.”
According to Foley, GP payroll tax will force clinics to either close their doors or increase fees, further impacting patients dealing with the cost-of-living crisis.
Foley said legislating a payroll tax exemption for GPs would greatly benefit the broader Queensland community.
“We call on the Queensland government to do the right thing for primary care and exempt GPs from this tax,” he said.
“The pledge by the opposition will ensure a visit to the GP remains affordable, taking the pressure off emergency departments and making the primary care of everyone in Queensland a priority.”
“It’s a no-brainer and the Queensland government needs to follow suit.”
The RACGP has also supported the opposition's stance towards GP payroll tax.
Queensland is the first state to listen to peak medical bodies and provide an amnesty to prevent practices from going bankrupt due to retrospective tax, the RACGP said.
Queensland was also the first state to issue a new revenue office ruling that patients’ fees paid directly to a GP for that GP’s services will not be subject to payroll tax.
RACGP Queensland past chair Bruce Willett said he applauds the commitment as it recognises the critical importance of affordable general practice care.
“There is no substitute for the quality care you get from a GP who knows you,” Willett said.
“General practice care helps people stay healthy and out of hospital and it reduces pressure on our health system.”
Based on a RACGP survey, only 3 per cent of practices could absorb the costs of payroll tax on independent GPs and the rest would have to pass on the costs to patients.
“The LNP’s commitment to exempt GPs from payroll tax is an important step to keeping essential healthcare affordable and practices viable,” Willett said.
“Access to affordable GP care is essential for healthy communities and the future of Queensland.”
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