{"id":100781,"date":"2025-01-30T07:15:00","date_gmt":"2025-01-29T20:15:00","guid":{"rendered":"https:\/\/en.econostrum.info\/au\/?p=100781"},"modified":"2025-01-29T21:01:42","modified_gmt":"2025-01-29T10:01:42","slug":"racgp-urges-to-pass-gp-payroll-tax-exemption","status":"publish","type":"post","link":"https:\/\/en.econostrum.info\/au\/racgp-urges-to-pass-gp-payroll-tax-exemption\/","title":{"rendered":"RACGP Urges Queensland Government to Pass GP Payroll Tax Exemption"},"content":{"rendered":"\n

The Royal Australian College of General Practitioners (RACGP)<\/strong> has called on the Queensland government to approve a proposed payroll tax exemption for general practitioners (GPs)<\/strong>, arguing that the measure is critical for maintaining access to affordable healthcare across the state.<\/p>\n\n\n\n

Proposed Amendment to Payroll Tax Legislation<\/h2>\n\n\n\n

The Revenue Legislation Amendment Bill 2024<\/strong> was introduced in Queensland Parliament in mid-December and subsequently referred to the State Development, Infrastructure and Works Committee<\/strong> for further inquiry. <\/p>\n\n\n\n

The bill proposes changes to the Payroll Tax Act<\/strong>, ensuring that wages paid or payable by medical practices to GPs are not subject to payroll tax or the mental health levy<\/strong>.<\/p>\n\n\n\n

If passed, the exemption would apply retrospectively from 1 December 2024<\/strong>, providing clarity for general practices regarding their financial obligations. The proposed legislation aligns with Queensland\u2019s broader<\/a> healthcare strategy to improve affordability and accessibility to GP services.<\/p>\n\n\n\n

RACGP\u2019s Support for the Exemption<\/h2>\n\n\n\n

Dr Cath Hester<\/a>, RACGP Queensland chair<\/strong>, expressed strong support for the bill, commending the Crisafulli government<\/strong> for responding to calls to remove payroll tax on GP wages.<\/p>\n\n\n\n

\u201cQueensland is leading Australia in abolishing this tax on patients, and I applaud the Crisafulli government for its proposed amendments to this bill,\u201d Dr Hester said.<\/p>\n\n\n\n

She emphasised that the exemption would help make GP services more affordable<\/strong>, particularly amid rising cost-of-living pressures<\/strong>. Additionally, she noted that the amendment would provide financial certainty for general practices<\/strong>, ensuring they remain viable and continue serving communities across the state.<\/p>\n\n\n\n

The Impact on General Practice and Patient Care<\/h2>\n\n\n\n

Dr Hester<\/strong> highlighted that general practices play a crucial role in keeping people healthy and out of hospitals<\/strong>, thereby reducing pressure on the state\u2019s healthcare system.<\/p>\n\n\n\n

\u201cHardworking GPs across Queensland can get on with our job, helping people stay healthy and out of hospital, which also reduces pressure on the state\u2019s health system,\u201d she said.<\/p>\n\n\n\n

She stressed the importance of continuity of care<\/strong>, noting that GPs provide personalised, long-term medical attention<\/strong> that cannot be easily replaced. The RACGP maintains that ensuring affordable and accessible GP services<\/strong> should be a priority for governments at all levels.<\/p>\n\n\n\n

Key Benefits of the Proposed Exemption<\/h3>\n\n\n\n

According to the RACGP<\/strong>, introducing a payroll tax exemption for GPs will bring multiple benefits, including:<\/p>\n\n\n\n

    \n
  • Improved access to healthcare<\/strong> \u2013 More patients will be able to afford GP visits, reducing delays in seeking medical attention.<\/li>\n\n\n\n
  • Financial stability for general practices<\/strong> \u2013 Clinics will have clarity on tax obligations, helping them stay open and continue serving communities.<\/li>\n\n\n\n
  • Reduced strain on hospitals<\/strong> \u2013 With better access to GPs, fewer people will rely on emergency departments for primary care.<\/li>\n\n\n\n
  • Support for rural and underserved areas<\/strong> \u2013 Clinics in regional Queensland, which are already struggling to retain doctors, will be better positioned to remain viable.<\/li>\n\n\n\n
  • Consistency in tax treatment<\/strong> \u2013 Aligning tax policy with how GPs operate as independent practitioners will prevent financial uncertainty in the sector.<\/li>\n<\/ul>\n\n\n\n

    Background : The legal shift affecting GP payroll tax<\/h2>\n\n\n\n

    Historically, medical practices across Australia have paid payroll tax on their employees<\/strong>, including receptionists and nurses. However, GPs were traditionally considered independent contractors<\/strong> and therefore not subject to the same tax obligations.<\/p>\n\n\n\n

    This understanding changed following a 2023 ruling by the NSW Court of Appeal<\/strong>, which determined that independent practitioners could be classified as employees for payroll tax purposes<\/strong>. The decision raised concerns about retrospective tax liabilities<\/strong>, prompting state governments to reconsider their approach.<\/p>\n\n\n\n

    Queensland became the first state to introduce an amnesty<\/strong> to protect medical practices from potential bankruptcy due to unexpected retrospective tax obligations<\/strong>. The state also issued a new Revenue Office ruling<\/strong>, clarifying that fees paid directly to a GP for their services will not be subject to payroll tax<\/strong>.<\/p>\n\n\n\n

    The Revenue Legislation Amendment Bill 2024<\/strong> represents a significant shift in Queensland\u2019s approach to payroll tax on GPs. If passed, it is expected to provide financial certainty<\/strong> for general practices while supporting broader efforts to maintain affordable and accessible healthcare<\/strong>.<\/p>\n\n\n\n

    <\/p>\n","protected":false},"excerpt":{"rendered":"

    The Queensland government is considering a payroll tax exemption for GPs, a move that could impact healthcare affordability and practice sustainability. Discussions are ongoing.<\/p>\n","protected":false},"author":9,"featured_media":100782,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[],"class_list":["post-100781","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-taxation","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33","no-featured-image-padding"],"_links":{"self":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100781","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/comments?post=100781"}],"version-history":[{"count":2,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100781\/revisions"}],"predecessor-version":[{"id":100793,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/posts\/100781\/revisions\/100793"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media\/100782"}],"wp:attachment":[{"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/media?parent=100781"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/categories?post=100781"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/en.econostrum.info\/au\/wp-json\/wp\/v2\/tags?post=100781"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}