Almost 1100 doctors and patients sign petition against SA’s GP payroll tax move

Almost 1100 GPs and patients have signed a petition rallying against a “crippling” tax, fearing it could spell catastrophe for SA’s crumpling health system.

More than 1000 South Australian doctors and patients have signed a petition to scrap payroll tax against GP clinics, fearing the move could have catastrophic consequences for the state’s health system.

In the past 10 days, almost 1100 signatures have been collected from GP clinics on a Liberal Party petition revolting against the tax, which the AMA predicts could force gap fees to rise up at least $10.

Opposition leader David Speirs labelled the “tax grab” a “disgraceful move” while the state’s health system was on the brink of collapse, with GPs concerned higher costs passed on to patients could push them away from clinics and exacerbate ramping.

Mr Speirs said his party would abolish the tax if elected in 2026.

“Ramping is at record levels despite Peter Malinauskas’ promise to ‘fix it’, our hospitals are running out of beds every day and doctors and nurses are dangerously burnt out,” Mr Speirs said.

“Surely the premier understands making South Australians pay more to visit a GP puts even more pressure on our collapsing health system and makes ramping worse.”

Opposition leader David Speirs has called for the state government to scrap payroll tax for all GP clinics. Picture Dean Martin

The so-called “payroll tax grab” follows a Supreme Court decision in NSW last year, which confirmed that GPs were liable for payroll tax and revealed many had not been complying with their tax obligations.

While there has been no change to the application of payroll tax in SA, the decision — which impacted all states and territories — meant clinics which previously had not been paying would be forced to cough up come July 1 this year.

The state government has offered exemptions to bulk billed clinics and a $1.5 million wages threshold, which a government spokesperson said would ensure there was no further pressure on emergency departments.

They said 75 per cent of all GP consultations were bulk billed and many practices would fall well below the threshold, meaning the “vast majority” of clinics would not be forced to pay tax.

“South Australia’s legislated scheme will be the most generous in the country,” a spokesperson said.

“Importantly it is supported by the professional body for the GPs in South Australia, the Royal College of General Practitioners, which has been working closely with us for many months to ensure we get the balance right.”

However, a number of prominent industry voices have said the government’s leniencies do not go far enough.

Former AMA SA President Dr Chris Moy. Picture: Gabriel Polychronis

AMA state president Dr John Williams, a rural GP, said vulnerable patients could have their gap increased by up to $10 as clinics are forced to pass on costs.

“We’re deeply concerned some people may delay seeking essential care because of this crippling tax,” he said.

“We know if people don’t receive primary care when they need it, they become sicker and end up seeking desperately needed treatment from emergency departments.”

Former AMA state president Dr Chris Moy said EDs were “going to need a longer ramp” when the changes came into effect, while an Australian General Practice Network statement said patients would pay more.