Payroll Tax for GPs

For years, GPs have not been subject to payroll tax. A recent reinterpretation of tax law in NSW has changed this. Whilst most states and territories are still sorting out how to manage this change, the ACT Government has insisted it will begin taxing doctors.

This decision undermines previous government statements about making the primary healthcare system more ‘viable and sustainable’. General practices operate on very thin margins and cannot absorb a new tax. The cost will have to be passed on to patients, making it a tax on the sick and injured. Some people will be forced into EDs, further worsening the nation’s worst emergency wait times.

The minister has claimed it is wrong to exempt certain professionals from payroll tax, but the Act already includes exemptions because making hospitals, employment services, and educational services more expensive to operate and more difficult to access is foolish. Policy also exempts independent contractors, which is how GPs were classed until earlier this year. Today I and the Canberra Liberals called on the government to continue exempting GPs from payroll tax. Sadly, ACT Labor and the Greens unanimously voted against this sensible request. Going forward, many Canberrans will find it more expensive to see their doctor.

Click on the arrow button to read my speech.