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The Royal Australian College of GPs is urging the Tasmanian Liberals to match the opposition’s commitment to a full exemption on payroll tax for GPs.
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RACGP calls for clarity on payroll tax promise in Tasmania
07 March 2024
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The Tasmanian Liberals must provide further detail on its promise to maintain existing payroll tax arrangements “for genuinely independent contracting GPs”, the professional body for general practitioners has said.
The Tasmanian Liberals issued a statement this week stating that GPs who contract for the use of a room in a building, shared reception, and nursing staff and currently do not pay payroll tax will not be subject to payroll tax under a re-elected Liberal government.
While the Australian Medical Association has publicly welcomed the commitment, RACGP Tasmania chair Dr Toby Gardner has warned that this does not provide sufficient certainty for GPs and practice teams.
The RACGP would like clarity on the rules that apply so that general practices can ensure their business models and funding flows accurately reflect their work arrangements with independent practitioners.
“Promising to maintain the status quo isn’t enough, we need a firm commitment from the Liberals to match the opposition’s promise,” said Gardner.
“Not altering current payroll tax arrangements sounds suspiciously like doing nothing, and that simply isn’t tenable when you consider the impact that this tax will have on general practice care across Tasmania.
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“The opposition have stepped up and provided certainty that they will not subject practices to this tax hit, now we need the Liberals to do the same, or at the very least clarify exactly what it is they are promising or committing to.”
The Tasmanian Labor party announced last month that under a Labor government, GPs will have certainty they will not be subject to payroll tax.
Labor said it will ensure that a ruling is provided to exempt GPs from payroll tax.
“Hospitals are already exempt from paying additional payroll tax for their doctors and we want an even playing field for our GPs,” said Tasmanian Labor Leader Rebecca White.
Gardner said that the future of general practice care in Tasmania was in a precarious position without a firm commitment from both major parties.
“Payroll tax could spell the end of affordable general practice care in Tasmania and lead to more patients pouring into already overcrowded hospital emergency departments,” he said.
“We need firm commitment now ahead of the state election.”
RACGP said additional payroll tax will force more and more practices, including those in rural and remote areas, to hike patient fees or shut up shop.
“The stakes could not be higher here in Tasmania. Tasmania has the lowest bulk-billing rate in the country and recent Cleanbill report data found four of the nine electorates across the country which have no bulk-billing clinics are in Tasmania,” said Gardner.
“I look forward to hearing more from the Tasmanian Liberals and stand ready to work with whoever forms government to secure the future of general practice care in Tasmania.”
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