GP payroll tax will hurt patients, says AMAQ

Applying payroll to GP clinics will hurt patients, including those in nursing homes, Queensland’s peak medical body has warned.

Applying payroll to GP clinics will hurt patients, including those in nursing homes, Queensland’s peak medical body has warned, refuting claims by Treasurer Cameron Dick that it would mainly hurt “large corporate medical services”.

Acting Under Treasurer Maryanne Kelly, in budget estimates, said fewer than 100 GP clinics had signed up for the state government’s payroll tax amnesty.

The AMAQ warned the take-up was low because many were still getting legal and accounting advice.

Earlier this year, the state government put in place a 2½-year grace period for GP clinics unaware they were liable for payroll tax, giving them time to tweak their business structures or build a financial buffer. Ms Kelly said 93 GP clinics had signed up.

The AMAQ estimates there are 1400 GP clinics across the state, meaning just 6 per cent have put their name on the amnesty ledger.

Mr Dick, speaking at budget estimates, said the amnesty meant $100m in forgone revenue annually for the government.

AMAQ president Dr Maria Boulton said Mr Dick’s claim was a “misunderstanding” of how the tax affected GP clinics. She said most practices “targeted for auditing” were small suburbs and regional clinics.

The AMAQ says the payroll tax is a new interpretation of law in the aftermath of a NSW tribunal hearing. But Treasury and the government are adamant nothing has changed since 2008.