GP tax break a shot in arm for overstretched Qld health care

Your next trip to the doctor may be quicker and cheaper thanks to a big change in the industry.

GP Cathryn Hester says the tax exemption for GPs will reduce overheads and lead to greater GP services.

Queensland has introduced sweeping payroll tax exemptions for general practitioners and GP registrars, in a move expected to keep more doctors in business and alleviate the overstretched health system.

The changes, which came into effect this week, ensure that medical practices will not have to pay payroll tax on wages for GPs and GP registrars and may help lower healthcare costs and make doctor visits more affordable.

The move followed growing calls from the medical community for certainty surrounding payroll tax obligations and has been welcomed by the state’s peak medical body the Australian Medical Association of Queensland.

AMAQ president Dr Nick Yim said the exemption, under the Revenue Legislation Amendment, would help alleviate the financial burden on GP practices and ensure they could continue to operate without the threat of sudden unknown tax burdens.

The AMAQ has welcomed the tax exemptions for Queensland GPs which could help alleviate the overstretched health system.

“This legislation is clear that the exemption only applies to GPs and GP registrars,” Dr Yim said.

“Medical practices with an annual wages bill of $1.3 million or above have always paid payroll tax on employees, including nurses, receptionists and administrative staff, and this will continue.

“It provides certainty that practices will not be hit with unexpected, backdated tax bills that would otherwise force them to pass costs on to patients or close their doors and is great news for both patients and practices.”

Brisbane doctor Cathryn Hester, who opened her own practice at Colleges Crossing in 2016, said without the exemption GPs would have had to raise their fees.

Dr Cathryn Hester from Colleges Crossing Family Practice.

Dr Hester, who is also president of the Royal Australian College of General Practitioners, said the tax break was a sensible solution to rising practice costs.

“A payroll tax could have been the last straw for struggling practices, particularly those in regional and rural areas, where there are fewer doctors,” she said.

“By reducing financial pressures on practices, it could help increase the availability of GPs and improve patient access to primary healthcare and allow GPs to play a pivotal role in reducing strain on the state’s overstretched hospital and ambulance services.

“For patients, the wage exemption will help keep GP visits affordable and allow GPs to keep patient fee rises to a minimum and ensure any increases to Medicare rebates genuinely benefit patients, rather than being absorbed into state tax revenue,” Dr Hester said.

Australian Medical Professionals’ Society also backed the move saying it was a “game changer” for struggling GP practices.

Australian Medical Professionals’ Society secretary Kara Thomas said the tax relief for GPs will help reduce waiting lists to see GPs. Picture: Contributed

AMPS secretary Kara Thomas said the tax exemption would make it financially easier for practices to employ more GPs, a move that could address growing patient demand in the suburbs and alleviate pressures on the healthcare system.

“It allows practices to direct their resources toward patient care, improving service delivery and making it easier to expand,” Ms Thomas said.

“While the legislation directly benefits medical practices, its impact on patients is also significant, albeit indirect.

“Access to GPs is strained in many areas particularly in regional and remote parts of Queensland.

“The broader impact could include lower out-of-pocket costs for patients, as practices could pass on some savings from the exemption.”

Originally published as GP tax break a shot in arm for overstretched Qld health care