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GPs want Vic Premier to intervene in payroll tax

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Rising concerns over payroll tax in Victoria have prompted peak general practice groups to write to Premier Jacinta Allan and request that she have direct involvement in finding a solution.
 
The RACGP, Primary Care Business Council (PCBC) and Australian GP Alliance (AGPA) told Premier Allan they are disappointed with recent comments from Treasurer Tim Pallas and have asked for: 

• no retrospective collection of payroll tax liabilities  
• Victoria to follow Queensland and provide a new tax ruling, clarifying that patients’ fees paid directly to a GP for their services won’t be subject to payroll tax 
• an assisted compliance period to allow general practices to make changes to be in line with the new ruling, so they don’t have to pass the tax on 
• ongoing dialogue to understand the consequences of the imposed forms of compliance demanded. 

‘The Treasurer has shown he is more interested in blaming others than owning his mistakes and meeting with GP groups to prevent practices having to raise fees or closing,’ RACGP Victoria Chair Dr Anita Muñoz said.
 
‘It’s incredibly disappointing that he claims to be “actively engaging” with GPs, when in reality there has been little to no effort on his part to find a solution that ensures Victorians will have access to affordable and high-quality care into the future. 
 
‘We’re urging the Premier to intervene. The Government’s impost of additional payroll tax on practices is the biggest threat the affordable care in our state – it’s a tax on patients.’
 
Dr Muñoz went on to say that the new interpretation of payroll tax liability will be ‘devastating for the entire health system’, as many people will not be able to afford general practice care.
 
‘When people can’t afford care, they get sicker, and they’ll be forced into the state’s overflowing hospitals, which will cost far more for the Government and taxpayers,’ she said. 
 
‘I hope HotDoc’s alarming survey data helps the Premier see sense to meet with GPs to find a solution.
 
‘Queensland provided a new tax ruling, clarifying that patients’ fees paid directly to a GP for their services won’t be subject to payroll tax. We need Victoria to follow this approach and commit to stop squeezing practices for backdated tax – this will cause widespread closures.’ 
 
The state’s tax approach also threatens to have national implications, with RACGP President Dr Nicole Higgins saying it will undermine recent efforts to improve access to care. 
 
‘This state payroll tax grab is undermining the Federal Government’s major investment in Medicare and general practice,’ she said.
 
‘Federal Health Minister Mark Butler also said he is “very worried” about this and would like national consistency with these tax arrangements that allows the Government to continue strengthening Medicare.
 
‘We do need a nationally consistent approach to this tax, otherwise GPs will leave to more favourable states, and it will be harder and harder for people to get the care they need to stay healthy and out of hospital.’ 
 
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payroll tax Victoria

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