AMA Queensland calls for payroll tax exemption for private practices

AMA Queensland is calling on all political parties to eliminate the patient tax by publicly committing to exempt all private medical practices from payroll tax.

This follows a parliamentary debate on the second last sitting day before the 26 October election, where both sides of politics agreed that imposing payroll tax on GPs would have a devastating impact on patients’ access to primary care.

The LNP moved a motion to revoke the Queensland Revenue Office’s Public Rulings that clarify that patient fees, including the Medicare rebate and any out-of-pocket expenses, will not be subject to payroll tax when they are paid directly from a patient to a GP for that GP’s services.

Treasurer Cameron Dick said revoking the rulings would lead to more doctors paying payroll tax.

“We have provided a ruling that sets out a pathway about how they can become compliant without having to pay payroll tax. Then we provided an amnesty, to give them the time and space to do so,” Mr Dick said.

“The LNP now seek to revoke those beneficial arrangements. This would potentially put every medical centre in default of their taxation arrangements at the expiry of the amnesty.”

But Shadow Treasurer David Janetzki said the government had not carefully considered the real-world impacts of its policy.

“Good governments do not drive up the cost of seeing a doctor in the middle of a cost-of-living crisis. Good governments do not increase the rate of presentations to emergency departments and drive down bulk-billing rates in the middle of a health crisis.

“Good governments certainly do not force doctors to be bookkeepers when they should be healing Queenslanders.”

LNP backbencher Jon Krause went further.

“There is a simple solution: not tax our GPs. Change the rules when it comes to payroll tax: exempt GPs,” Mr Krause said.

“Get rid of the patient tax and take the burden off Queenslanders who are already suffering enough in the cost-of-living crisis created by members opposite and the Albanese federal Labor government.”

The motion was lost along party lines.

AMA Queensland Immediate Past President Dr Maria Boulton said it was encouraging to see payroll tax being debated in parliament.

“This shows our politicians understand the threat of this new tax to patient costs and practice viability,” Dr Boulton said.

“We also support the Opposition's solution to exempt GPs from this patient tax – something we have argued for since GPs started getting unexpected backdated bills in 2021.

“We now call on both parties to announce an exemption for all private practices before the 26 October state election.

“Every private practice must be given the same certainty so Queenslanders can continue to access medical care from their GPs and other specialists.

“The simplest way to solve this problem and keep quality private medical care accessible for Queenslanders is to exempt all medical practices from this patient tax, in the same way public and most private hospitals are exempt.

“At the very least, the amnesty should be extended to all medical practices to provide financial certainty for non-GP specialists and their patients.”