Labor must follow LNP on payroll tax for GPs
Labor should follow the LNP and commit to a payroll tax exemption for GPs, and all parties should extend the exemption to all private practices. “We are in a cost-of-living crisis and now is not the time to make seeing your doctor more expensive, particularly for vulnerable patients who need to see their GP more often, such as elderly people, patients with chronic illnesses, and young families." - AMA Queensland President Dr Nick Yim.
The LNP’s commitment to exempt GPs from payroll tax if it wins government is a welcome decision that recognises the cost-of-living crisis facing patients.
“AMA Queensland congratulates the LNP on this sensible announcement and urges Labor to make the same commitment ahead of the 26 October state election,” President Dr Nick Yim said.
“We are in a cost-of-living crisis and now is not the time to make seeing your doctor more expensive, particularly for vulnerable patients who need to see their GP more often, such as elderly people, patients with chronic illnesses, and young families.
“Patients and GPs need certainty about what will happen when the payroll tax amnesty ends next year.
“While we thank the Government for the amnesty and the Queensland Revenue Office for its Public Ruling clarifying that payments made by a patient directly to a GP will not attract this new tax, there is still too much uncertainty.
“GPs remain concerned that they will be audited when the amnesty ends or what will happen when federal MyMedicare payments are implemented next year.
“Additionally, non-GP private specialists are not eligible for the amnesty and have no certainty that they will not be hit with crippling retrospective bills out of the blue.
“We would much prefer to be employing nurses and caring for patients.
“We will continue to call for all private medical practices to be exempt from this new interpretation of the tax, but this is a very welcome first step.”
The payroll tax exemption is part of AMA Queensland’s Election Priorities 2024, which lays out a blueprint for all political parties for reform of the Queensland healthcare system.
Background
- Practices pay payroll tax for employees including receptionists and nurses, but not GPs who effectively rent rooms from the practice.
- In 2021, a New South Wales tribunal ruled that tenant GPs were employees, not contractors, and as such were subject to payroll tax.
- This was a change in interpretation of the laws in place since 2008 and, due to harmonisation arrangements, is now being applied in other states.
- AMA Queensland members reported receiving unexpected backdated payroll tax bills ranging from tens of thousands to millions of dollars.
- In February 2023, following concerted AMA Queensland advocacy, the government announced an amnesty for eligible general practices until 30 June 2025 to give them time to restructure their businesses to comply with a new Public Ruling.
- A second Public Ruling was issued in September 2023 clarifying that payments made directly by the patient to the doctor did not attract payroll tax.
