Parliamentary inquiry to hear how state gov prevented GPs from going bust

The Queensland government has saved GPs from going bust and allowed patients more affordable care, a parliamentary inquiry is set to hear.

Queensland government has saved GPs from going bust and allowed patients more affordable care, a parliamentary inquiry is set to hear.

A parliamentary inquiry is to hear how the Queensland government has saved GPs from going bust and allowed patients more affordable care.

As Queensland leads Australia with the payroll tax exemption for specialist GPs, one of the state’s top doctors will call for a country wide abolishment of the tax at a parliamentary probe on Thursday.

RACGP Queensland Cath Hester will speak about the cost of living benefits for Queenslanders at the inquiry into the Revenue Legislation Amendment Bill 2024, which includes the GP payroll tax exemption.

Dr Hester said the RACGP has praised the Crisafulli Government for acting on the College’s calls to abolish the tax.

“Queensland is leading Australia in abolishing this tax on patients, and I applaud the Crisafulli Government for its proposed amendments to this Bill,” she said.

Dr Cath Hester. Picture: Richard Walker

“This will help to improve access to affordable GP care for people across our state, at a time when many are struggling with cost-of-living.

“It also gives general practices certainty that they can remain viable and keep their doors open for people in every community. And hardworking GPs across Queensland can get on with our job, helping people stay healthy and out of hospital, which also reduces pressure on the states’ health system.

“General practice is essential – there’s no substitute for the high-quality care you get from a GP who knows you.

“Everyone in our state, and across Australia, deserves this care and governments should be doing everything they can to ensure it is affordable and accessible for all.”

Practices across Australia have always paid payroll tax on their employees, including receptionists and nurses, but it never applied to GPs because they work independently. This changed after a final ruling by the NSW Court of Appeal in 2023 deemed independent practitioners as employees for payroll tax purposes.

Queensland was the first state to provide an amnesty to prevent practices going bankrupt due to retrospective tax. It was also the first state to issue new Revenue Office ruling that patients’ fees paid directly to a GP for that GP’s services will not be subject to payroll tax.

Originally published as Parliamentary inquiry to hear how state gov prevented GPs from going bust