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  • Healthy respect for ruling on GP payroll tax changes

    Author: AAP

Doctors and general practice owners have welcomed a decision by the Queensland government to not subject GPs to extra payroll taxes.

Treasurer Cameron Dick told parliament the state's Revenue Office would next week give an updated public ruling to provide certainty to business and medical practices.

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Patient fees, including the Medicare benefit and any out-of-pocket expenses that are paid directly by a patient to a GP for that service, would not be subject to payroll tax, he said on Thursday.

"I understand that this presents a viable option for these practices going forward and is an important step on the path to the resolution of this national issue," Mr Dick said.

He said national payroll tax issues arose because of legal proceedings in NSW and Victoria.

The ruling changed the interpretation of payroll tax and considered GPs at certain medical practices to be employees, under relevant contracts for payroll tax purposes.

Queensland currently offers an amnesty relating to payments to contracted GPs, in effect until June 30, 2025.

The government has extended the expressions-of-interest period for amnesty from September 29 to November 10 as part of the announcement.

In discussions with the treasurer's department, the Royal Australian College of General Practitioners (RACGP) asked for no retrospectivity, clarity around what qualifies for payroll tax, and time to adjust to the new rules.

President Nicole Higgins said the move would keep essential general practice care affordable for Queenslanders.

She said that without the changes, practices would pass on extra costs to patients and add pressure to hospitals.

"What's really important is that on November 1, the bulk-billing incentives will come in for eligible patients,'' Dr Higgins said.

"This is something that we use in our toolbox to help our vulnerable patients.

"Payroll tax would have killed off those bulk-billing incentives, and made it much more expensive for people to see the doctor. That's the real impact of this decision today."

The RACGP said only three per cent of practices would be able to absorb the costs of extra payroll tax on independent GPs, and 78 per cent would have to increase fees.

Surveys also showed more than half of respondents would have to increase out-of-pocket fees by more than $20, and 35 per cent would consider moving interstate for favourable payroll tax settings.

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