GPs close by the dozen as payroll tax plan sparks fears of more to follow

Plans to slug GP clinics with payroll tax will push even more to pull the pin, experts have warned.

As dozens of GP clinics close, a major suburban practice warns a new $110,000 state government tax on it will be the death knell for bulk billing.

New data shows dozens of GP clinics have shut across the nation in the past 12 months, putting further pressure on remaining clinics and hospital emergency departments leading to ongoing ambulance ramping.

However, the figure in South Australia remains unknown with the relevant agencies declining or unable to provide information to The Advertiser.

A survey of the nation’s 31 primary health networks (PHNs) by the Royal Australian College of General Practitioners’ news website, newsGP, found 184 GP practices had closed last financial year and while others had opened, there was a net loss of 55 clinics.

However, the figure may be far higher as only about half of the PHNs responded.

Just 16 of the 31 PHNs provided full information and those that did not take part included the two covering South Australia — the Adelaide PHN and Country SA PHN.

The Advertiser approached both seeking data on GP practices that had closed and how many had opened.

Adelaide PHN responded saying: “Adelaide PHN does not have oversight of the information requested. The general practices operating across Adelaide are independent businesses and operate autonomously to the PHN.”

Country SA PHN responded saying: “Unfortunately, we do not have approval to provide this information.”

RACGP president Dr Nicole Higgins

Dr Daniel Byrne in his surgery in Happy Valley. Picture: Naomi Jellicoe

Royal Australian College of General Practitioners president Nicole Higgins forecast more closures and was disappointed the South Australian PHNs did not supply data.

“That data needs to be transparent and shared,” she said.

Dr Higgins warned the imposition of payroll tax was one of the biggest threats facing GP practices and while she appreciated the SA government has given an amnesty until next financial year, she warned it may see up to one in three practices at risk of closure.

“When GP practices close we see the pressure it puts on hospitals, with increased ramping as a result,” she said. “Our biggest threat now is payroll tax which is killing investment in clinics.

“GPs are the engine room of the health system — when someone presents with an earache to a GP it costs taxpayers $40, when the go to hospital it costs taxpayers $600.”

Chandler Hill Surgery GP Dr Daniel Byrne notes practices are small businesses that face mounting challenges to remain viable as well as affordable for patients.

“Payroll tax will cost our practice $110,000 a year and the only way to cover it is to increase fees,” he said.

Dr. Byrne estimated to cover payroll tax they would need about $3.50 per consultation but it was illegal to add $3.50 separately to bulk billed consultation.

“So this will see the final nail in the coffin of middle class bulk billing – people with mortgages and struggling with the cost of living,” he said, adding his surgery would continue to bulk bill battlers.

“For a state government elected to fix ramping and health it seems counter intuitive hit GPs with another tax,” he said.