The Royal Australian College of GPs (RACGP) says New South Wales GPs have not been given enough time to prepare for payroll tax changes with no information just seven business days from when the changes take effect.
RACGP NSW Chair Dr Rebekah Hoffman said: “It’s incredibly disappointing that we are just seven business days from when these significant changes take effect, and GPs still have no information from Revenue NSW.
“This is nowhere near enough time for GPs to prepare and make changes that they may need, and it’s causing a great deal of unnecessary stress for GPs when we just want to get on with caring for our patients. It’s not good enough.
“We appreciate that the NSW Government granted no retrospectivity for payroll tax on independent GPs, as this will help ensure practices aren’t sent bankrupt and can keep their doors open for patients.
“However, practices may need to make changes in line with the new rules, and this will take time. The RACGP requested an extension to the amnesty to allow the time needed for GPs to adapt, but it was declined.
“Now NSW GPs are stuck in a very difficult situation, knowing these changes are coming, but not knowing what they need to do to prepare. Again, I urge the NSW Government to provide an extension to the amnesty, so GPs have time to make the changes they need to, and patient care is not disrupted.”
General practices have always paid payroll tax on their employees, including receptionists, GPs in training and nurses, but it never applied to GPs because most are not employees, they work under independent agreements. This changed after a final ruling by the NSW Court of Appeal in 2023 deemed independent practitioners as employees for payroll tax purposes.
In June this year, the NSW Government agreed to no retrospective tax, and an exemption tied to general practices meeting bulk billing thresholds, after strong warnings from the RACGP that this would result in widespread practice bankruptcies and closures.