RACGP urges Qld government to pass GP payroll tax exemption

The Royal Australian College of General Practitioners (RACGP) has outlined the benefits of introducing a payroll tax exemption in a recent inquiry hearing into the Revenue Legislation Amendment Bill 2024.

The bill amends the Payroll Tax Act to introduce an exemption that provides that wages liable to payroll tax and the mental health levy do not include wages paid or payable by medical practices to GPs.

It was referred to the State Development, Infrastructure and Works Committee for further inquiry after being introduced into Queensland Parliament in mid-December.

The amendments in the bill will have retrospective effect from 1 December which means it will apply to relevant wages paid or payable from 1 December 2024 onwards.

RACGP Queensland chair Dr Cath Hester spoke about the benefits that legislating the bill will have for Queenslanders and praised the Crisafulli government for acting on the college’s calls to abolish the payroll tax on wages paid by practices to GPs.

"Queensland is leading Australia in abolishing this tax on patients, and I applaud the Crisafulli Government for its proposed amendments to this Bill,” Hester said.

“This will help to improve access to affordable GP care for people across our state, at a time when many are struggling with cost-of-living.

Hester said the amendments would also give general practices certainty that can remain viable and keep their doors open for people in every community.

“Hardworking GPs across Queensland can get on with our job, helping people stay healthy and out of hospital, which also reduces pressure on the states’ health system,” she said.

“General practice is essential – there’s no substitute for the high-quality care you get from a GP who knows you. Everyone in our state, and across Australia, deserves this care, and governments should be doing everything they can to ensure it is affordable and accessible for all.”

The RACGP said while practices across Australia have always paid payroll tax on their employees, including receptionists and nurses, it was previously understood that this did not to GPs because they work independently.

However, this changed after a final ruling by the NSW Court of Appeal in 2023 deemed independent practitioners as employees for payroll tax purposes.

“Queensland was the first state to listen to the RACGP and provide an amnesty to prevent practices going bankrupt due to retrospective tax,” it said.

“It 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.”