GPs continue campaign against changes to payroll tax laws

The state’s Treasurer Cameron Dick has refuted claims from GPs that they are facing a new payroll tax, arguing nothing has changed apart from the ending of a covid-imposed compliance break.

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The way payroll tax applies to general practice in Queensland hasn’t changed since 2008, the state government insists, despite outcry from medicos claiming they have become victim to a new cash grab.

According to peak medical bodies including the AMAQ and the RACGP, a new interpretation of payroll tax laws means general practices are now liable for an increased 4.75 per cent of total billings made by doctors who work as contractors.

But the Queensland Revenue Office, in a rare public appearance on Tuesday alongside Treasurer Cameron Dick, argued this simply wasn’t the case.

Acting Queensland Revenue Commissioner Amy Rosanowski and Mr Dick explained the way payroll tax was applied to medical centres had not changed since 2008 – though the issue had come sharply into focus since a number of court rulings interstate that found certain medical centres were structured in such a way that made them liable for payroll tax.

Queensland Treasurer Cameron Dick. Pic: Dan Peled

Ms Rosanowski said compliance action on general practices had occurred between 2008 and before the start of the Covid-19 pandemic, when compliance action on the sector was paused in acknowledgment of the health crisis.

Mr Dick said state authorities were committed to working with peak medical bodies about their concerns and discussions were underway.

“So what we’ve tried to do here is…support general practice but also maintaining the integrity of the system for general Queensland taxpayers, and that’s what taxpayers would expect of the government and of course revenue offices,” he said.

It comes as the state’s GPs continue their campaign against what they are calling a new patient tax imposed by the Queensland Government.

What they see as a new interpretation of payroll tax laws means general practices are now liable for an increased 4.75 per cent of total billings made by doctors who work as contractors.

Australian Medical Association Queensland president and general practitioner Dr Maria Boulton has labelled the tax “immoral”.

“GP practices already pay payroll tax on our employees, the fact of the matter is that there’s been a change in the interpretation of the law as pertains to patients being seen by their GPs and accessing healthcare services,” she said.

“When a patient goes to a public hospital, that service is payroll tax exempt and it’s exempt for a very good reason. It’s because healthcare is an essential need that humans have in Australia and that is why it is so important and this is why we’re here for patients.

“We’re here because patients deserve to have access to their GPs.”

Australian Medical Association Queensland president Dr Maria Boulton.

Dr Boulton joined Royal Australian College of General Practitioners Queensland chair Dr Bruce Willett, Brisbane GP Dr Aaron Chambers and Opposition Leader David Crisafulli at a press conference to continue calls for a tax exemption on doctors working as contractors in practices.

“The RACGP has done some surveys and only three per cent of practices said that they could absorb this tax, 87 per cent of practices said that they would have to pass it on and five practices said that they would probably go broke with this new tax burden,” Dr Willett said.

The Sunday Mail revealed earlier this month that the new requirement to pay tax would see the end of bulk billing and increase out of pocket costs by as much as 15 per cent.

Dr Chambers said he had no choice but to raise patient fees.

“I’m really worried about the people we don’t see because I know it’s exactly the people who might need health care and are most vulnerable,” he said.

“We know that the people who have the lowest income are at most risk of adverse health outcomes and they’re also exactly the people who are less likely to come because of that financial barrier. They’re the ones I’m most worried about.”

He said without sufficient federal funding to Medicare and with an added tax on patients it became impossible to support those patients.

RACGP national president Dr Nicole Higgins said it would “break general practice” and increase bed block across the state’s already strained hospital system.

Opposition Leader David Crisafulli said that on 26 occasions before the last election, the treasurer promised there would be no new or increased taxes.

“Well nothing has changed for a single medical practitioner across the state, their business model remains exactly as it was and yet in the shadows of Christmas, a new tax grab was implemented that will be passed on to patients in the middle of a cost of living crisis,” he said.

“Why would you charge people more to see their GP in the middle of a health crisis? Why would you funnel more people into an emergency department that is already bursting at the seams?”