RACGP welcomes Victorian Parliament passing tax bill with amendments to protect bulk billing

The Royal Australian College of GPs (RACGP) has welcomed the Parliament of Victoria passing omnibus tax legislation with amendments to protect bulk billing for Victorians.  

The State Taxation Further Amendment Bill 2024 passed the Senate yesterday with amendments exempting GPs from payroll tax on bulk billed services. In May, the Victorian Government committed to a retrospective exemption on payroll tax for independent GPs, meaning practices won’t be hit with a payroll tax bill that could shut them down. 

RACGP Victoria Chair Dr Anita Muñoz said: “We welcome this legislation passing – it will help to protect bulk billing for Victorians. 

“This is a step forward to ensure everyone in Victoria can access affordable GP care, which is essential for people to stay healthy, and out of hospital.  

“Recently the RACGP welcomed Queensland becoming the first state to abolish payroll tax on GPs, with the newly elected Crisafulli Government making it a priority for the party’s first week in office.  

“I encourage our government to take note, as this is the best solution to ensure affordable GP care and greater access to bulk billed services for patients.” 

General practices across Australia 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.