GP payroll tax exemption will help ensure access to affordable care for Queenslanders

The Crisafulli Government’s payroll tax exemption for specialist GPs will improve access to this essential healthcare and other states and territories should follow suit, says the Royal Australian College of General Practitioners (RACGP).   

On Thursday, RACGP Queensland Chair Dr Cath Hester will speak about the benefits for Queenslanders at a parliamentary committee inquiry into the Revenue Legislation Amendment Bill 2024, which includes the GP payroll tax exemption. 

Dr Hester said the RACGP has praised the Crisafulli Government for acting on the College’s calls to abolish the tax. 

"Queensland is leading Australia in abolishing this tax on patients, and I applaud the Crisafulli Government for its proposed amendments to this Bill,” she said. 

“This will help to improve access to affordable GP care for people across our state, at a time when many are struggling with cost-of-living. 

“It also gives general practices certainty that they can remain viable and keep their doors open for people in every community. And hardworking GPs across Queensland can get on with our job, helping people stay healthy and out of hospital, which also reduces pressure on the states’ health system. 

“General practice is essential – there’s no substitute for the high-quality care you get from a GP who knows you. Everyone in our state, and across Australia, deserves this care, and governments should be doing everything they can to ensure it is affordable and accessible for all.” 

Practices across Australia have always paid payroll tax on their employees, including receptionists and nurses, but it never applied to GPs because they work independently. This changed after a final ruling by the NSW Court of Appeal in 2023 deemed independent practitioners as employees for payroll tax purposes.   

Queensland was the first state to listen to the RACGP and provide an amnesty to prevent practices going bankrupt due to retrospective tax. It was also the first state to issue new Revenue Office ruling that patients’ fees paid directly to a GP for that GP’s services will not be subject to payroll tax.