Labor joins LNP in vowing no GP ‘patients tax’

Doctors’ groups have welcomed a bipartisan Queensland election pledge to exempt GPs from paying payroll tax, a move they say will help keep medical costs down.

Premier Steven Miles has promised legislation to prevent GPs paying payroll tax, negating what he described as a key line of opposition “misinformation” that accused Labor of planning a “patients tax”.

The pledge came a week-and-a-half after Opposition Leader David Crisafulli promised to do the same in one of his first commitments of the campaign proper.

Premier Steven Miles and David Crisafulli clashed over “patients tax” claims during last week’s debate.Credit: Dan Peled

Medical practices have always paid payroll tax on their employees, such as receptionists and nurses, but it never applied to general practitioners because they worked independently.

But a legal ruling last year on the interpretation of payroll tax found GPs to be employees, making them subject to the impost. That sparked nationwide campaigns from doctors’ groups to exempt GPs from the tax.

The Queensland government introduced an amnesty for GPs last year to give clinics time to consult and make adjustments before its planned expiration on June 30, 2025.

But doctors’ groups continued to push for an exemption, arguing the cost of restructuring would be up to $50,000 for a large clinic. The annual cost of the amnesty was $100 million in forgone revenue.

The topic caused one of the tensest moments of last week’s leaders’ debate, when Miles accused Crisafulli, who had just spoken of his commitment to cut what he called Labor’s “patients tax”, of “making things up”.

Miles continued that theme in Brisbane on Wednesday.

“They were scaring GPs and patients by claiming there was some kind of tax that there wasn’t, and that was successful,” he said.

LNP leader David Crisafulli at Central Queensland University’s school of nursing, midwifery and social sciences in Rockhampton last week.Credit: Cameron Atfield

“We want to make sure that that misinformation campaign is dispelled. That’s why we’ve said that we will legislate to make sure that there is never such a tax.”

Campaigning in Townsville, Crisafulli cast doubt on Labor’s commitment.

“What little credibility the government had in healing the Queensland health crisis has today been shredded,” he said.

Asked if he was suggesting Labor was lying about its intention to exempt GPs from payroll tax, Crisafulli said the way the government had “conducted themselves … only points to one thing”.

“Have a look at their record,” he said.

AMA Queensland president Dr Nick Yim was more welcoming of Labor’s commitment.

“This decision to exempt general practice puts an end to uncertainty for these practices, and their patients, and is a great announcement,” he said.

Royal Australian College of General Practitioners spokesman Dr Bruce Willett said Queensland patients now had certainty that they would not have increased costs because of the tax, no matter who won this month’s election.

“General practices run on very thin margins. Our surveys found that only 3 per cent of practices could absorb the costs of payroll tax on independent GPs. The rest would be forced to pass the cost on to patients,” he said.

“This important step by the Queensland government ensures practices remain viable and GP care stays affordable.”

Primary Care Business Council chairman Dr Ged Foley commended both sides of Queensland politics and called for other state governments to follow suit.

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