Australian Medical Association of Queensland slams state government’s tax grab on GPs

Bulk billing will end and patients will flock to already overwhelmed emergency departments under a Queensland government “tax grab” on GPs, the state’s peak medical body warns. VOTE IN OUR POLL

The peak body for doctors in Queensland is at loggerheads with the state government over payroll tax, with fears bulk billing will be wiped out and patients will flood already overwhelmed emergency departments.

The Australian Medical Association Queensland president, Maria Boulton, is adamant doctors are to be hit with payroll tax that will force many practices to close. But the government denies there are changes to how doctors are taxed.

“The government can deny there’s been any change all it likes but that’s not what our members are telling us. They are being asked to pay back payroll tax in the vicinity of hundreds of thousands of dollars, in one case $3 million, going back five years,” Dr Boulton told The Courier-Mail.

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“We’ve asked the Queensland Revenue Office for clarity and their response is that tax law is complex and ever changing. But they made it clear to us in a letter last November that the NSW tribunal decision would flow into Queensland decisions because the tax laws are harmonised between the states.

“It’s not the law that’s changed as such, it’s the way it’s being interpreted that’s changed.”

To add fuel to the fire, the national peak body representing general practitioners confirmed it has received written confirmation from the Queensland Revenue Office there is no intention to change payroll tax legislation.

Australian Medical Association of Queensland president Dr Maria Boulton.

The Royal Australian College of GPs (RACGP) noted they “fully appreciate that some members will be alarmed about the implications of recent court decisions” but also said “we do not want to create unnecessary panic”.

“We are supporting members to understand the impact of recent court decisions and their payroll tax liabilities, so they are prepared and can take action if needed,” the body’s president, Karen Price, said in a statement.

“The Commissioner of State Revenue at the Queensland Revenue Office … reassured us that there is no intention for any changes to current interpretations of the law.

“Unfortunately, we can still expect some practices to face audits, which is why we fully encourage all members … to act now by seeking guidance from appropriately qualified accounting and legal advisers to review their arrangements.”

Treasurer Cameron Dick also rejected that there was a change to how the legislation is being interpreted and enforced.

“There’s been no change to the regime for payroll tax relating to contractors since 2008,” he said.

“This has been a standard practice and standard procedure for the State Revenue Office now for 14 years.”

The Treasurer said medical practitioners had been given various concessions during the Covid-19 pandemic to provide assistance to their business operations, which included breaks on payroll tax.

“But as our economy’s strength regained we need to get back to where we were, which is regular compliance activities – nothing more or nothing less than we did prior to covid,” he said.

“As compliance resumed, the Revenue Office has had access to better data matching, particularly through the Australian Taxation Office, that’s led to the identification of compliance issues in a number of contractors.

“Prior to Covid-19, the Queensland revenue office was identifying on average about 70 issues a year with payroll tax for contractors

“Last year that rose to 195 – of those, 18 were medical practices.

“So far since July this year, they’ve identified issues with 71 contractors (and) so far four of the 71 are medical practices.

“That’s because they’re contractors, not because they’re GPs and not because GPs are being specifically targeted.”

But the AMAQ remains concerned for GPs.

Premier Annastacia Palaszczuk’s government is under fire over its “tax grab” on Queensland GPs. Picture: Dan Peled

“Every day we see stories of practices closing and towns losing their only doctor. Earlier this year, the TriStar Medical Group collapsed, leading to the closure of dozens of general practices in rural and regional Australia,” Dr Boulton said.

“In most cases, GPs are not employed by their clinics. They have a service agreement to use clinic premises and administrative support, but the clinic does not pay their wages, superannuation or leave.”

Dr Boulton said the crippling patient tax would mean the end of bulk billing in Queensland.

“The state government is effectively extinguishing any bulk billing in general practice,” she said.

The Acting Commissioner of State Revenue, Amy Rosanowski denied there had been any changes to the way doctors’ practices are being taxed.

“QRO has reviewed the New South Wales decision and has not identified any aspect that it considers changes the scope, practice or approach to payroll tax in Queensland,” she said.

Shadow Treasurer David Janetzki said he shared the fear that changes in payroll tax would threaten the future of bulk billing.

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“I’m deeply alarmed that the state’s peak medical body is concerned these new tax bills will threaten the future of bulk billing for Queenslanders across the state. It will also send thousands of Queenslanders to our already overstretched hospitals,” he said.

“Despite promising no new or increased taxes at the election, the Palaszczuk government rolled out a renters’ tax in the middle of a housing crisis and now they’re proposing a tax on patients in the middle of a health crisis.”