GPs Want Payroll Tax Scrapped

Victorian GPs are calling on all political parties contesting the upcoming state election to commit to scrapping payroll tax for general practices, arguing it would help protect access to affordable healthcare and ease pressure on struggling clinics.

The Royal Australian College of GPs (RACGP) has welcomed a commitment from one political party to remove the tax if elected, while urging all other candidates to adopt the same policy ahead of the November election.

The College says payroll tax has become an increasing burden for many general practices, adding to rising operating costs at a time when many clinics are already operating on narrow margins.

The call comes as RACGP Victoria welcomes 167 new specialist GPs into the profession.

RACGP Victoria Co-Deputy Chair Dr Aadhil Aziz said removing payroll tax would provide much-needed relief for practices and help ensure patients continue to have access to affordable care.

“Today, we’re not just welcoming our 167 newest Fellows into practice as specialist GPs in Victoria – we’ve looking at potential relief for the practices they’ll be working at thanks to this commitment from the Opposition,” he said.

“Relief is the right word it – the news a Victorian Liberal and Nationals Government will scrap payroll tax for general practices if elected in November will be very welcome to practices.

“If we want Victorians to see a GP and access to affordable healthcare when they need one, general practice has to be financially sustainable.

“Most general practices are small businesses, and the margins are extremely thin – 2–3%.

“On top of this, practices have been hit by skyrocketing inflation and operating costs.

“Together, these pressures are making it harder for practices to stay viable, recruit doctors and keep care affordable for patients.

“Scrapping the extra cost of payroll tax will not only protect existing practices and their patients, it will also help to ensure the sustainability of general practice into the future.

“We want all Victorians to have access to affordable care close to home, and there’s no substitute for high-quality care delivered by a GP who knows you, your history, and your community.

“This is an excellent move by the Victorian Liberals and Nationals, and a smart one. If patients can’t see a GP, they’re more likely to end up in our already stretched and costly hospital emergency departments.

“I challenge all parties and candidates who’ll be running in November’s election to offer the same relief for general practices and our patients.”

The RACGP argues that removing payroll tax would help practices remain financially sustainable, improve recruitment of doctors and reduce the risk of patients delaying treatment or turning to hospital emergency departments for non-emergency care.

With the Victorian election approaching, the College says it wants affordable access to general practice to become a key election issue and is urging every party and candidate to commit to the same level of support for GP clinics.