‘Absurd’: Minister’s shock dismissal of doctors’ GP tax fears
Senior Queensland Minister Mark Bailey has “absurdly” dismissed doctors’ warnings that medical clinics will be forced to close and the health system could “burst at the seams” as “a beat up”.
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Doctors are calling for Premier Annastacia Palaszczuk to urgently intervene in the GP payroll tax crisis before more medical practices are forced to shut and the health system “bursts at the seams”, but her government dismissed the tax change as “the usual course of business”.
Royal Australian College of General Practitioners president Dr Nicole Higgins is calling for the state government to urgently grant a payroll tax exemption for doctors, or risk causing the end of bulk billing, increasing ambulance ramping and putting more pressure on the public health system.
A new interpretation of laws means money paid to GP clinics from Medicare is captured under payroll tax, leading to practices having to fork out thousands of dollars in unexpected bills.
Senior Palaszczuk Government Minister Mark Bailey on Sunday dismissed the concerns as “a beat up”, incorrectly claimed the state has the lowest payroll tax in the country, and handballed responsibility to the Commonwealth.
“Let’s be clear, this is not having the impact as outlined this morning. It’s part of the usual course of businesses,” he said.
“We need reform in the GP sector at a federal level.
“95 per cent of Queensland businesses pay no payroll tax at all and those that do pay the lowest rate in the country.”
Queensland’s payroll tax is 4.75 per cent for companies with a turnover of $1.3-6.5 million a year or more, or 3.75 per cent in regional areas.
In comparison, Tasmania charges just 4 per cent for companies with a turnover of 1.25-2 million, though 6.1 per cent for those above that, and South Australia charges no payroll tax for companies with a turnover of up to $1.5 million but then has a variable rate from zero to 4.95 per cent after that.
Victoria charges 5.5 per cent, but has a special regional rate of 1.2125 per cent.
Dr Higgins said disagreed with the Minister’s claim there was no issue, calling for the Premier to take urgent action.
“It’s not the usual course of business,” she said.
“Granting an exemption would allow general practices to continue to do what we do, otherwise bulk bill rates will plummet … ramping will increase and the state health will burst at the seams,” she said.
“If we don’t have an intervention sooner than later, the state health system will be under more pressure than it already is.”
She warned the issue was threatening to become a national issue if other states followed the new interpretation of the law, and will be seek a meeting with Federal Health Minister Mark Butler this week.
Opposition leader David Crisafulli said Mr Bailey’s comments were “absurd” and called for the state government to sit down with the medical organisations.
“If you’re asking a group of people who haven’t paid a tax to pay it, they’re either putting up their prices or leaving down. That’s going to impact Queenslanders immeasurably,” he said.
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