GP time on GST means less time with patients
In The Australian today, a spokesman for Health Minister Dr Wooldridge was quoted as saying: "…doctors could not use GST compliance costs as an excuse for not passing on savings when bulk billing did not apply…Health has been excluded from the GST".
AMA President, Dr Kerryn Phelps, said today these comments display total ignorance of general practice specifically and small business generally.
"The GST does not just cost money, it costs time," Dr Phelps said.
While most medical services do not attract GST others do, such as medical reports for insurers. GST must be paid on rent, and on medical supplies then claimed back. Doctors are required to submit quarterly BAS statements, and like other small businesses, have had to shoulder the burden of increased staffing and accounting costs to comply with GST requirements. The AMA, last year, conducted an extensive educational program to inform doctors about the onerous GST requirements on medical practice.
GPs and other medical practitioners have higher costs of compliance with the GST than most other small businesses.
"The claim that "…Health has been excluded from the GST", is farcical. Many health services are taxed, and every health service is rendered more costly by the GST," Dr Phelps said.
It is well recognised by experts that compliance costs are much higher in areas such as health care and food retailing. Even today, 15 months after the introduction of the GST, the Australian Taxation Office is still deliberating on the GST status of some services.
"In the areas where the GST does not apply to the activities of GPs, there is red tape and paperwork to confirm it does not apply, and this takes time - time that would be better spent with patients," Dr Phelps said.
17 September 2001
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