The Royal Australian College of GPs (RACGP) has welcomed the Australian Capital Territory 2025-26 Budget ahead of significant changes to how payroll tax is applied to general practices in the ACT.
The 2025-26 Budget seeks to support GP wellbeing and attract and retain GPs in line with ACT Labor’s 2024 election commitments, and improve access to general practice care.
It also includes spending to address the growing demand in outpatient services, reduce the elective surgery waitlist, and improve patient flow through the hospital system.
Importantly, the ACT Budget comes just ahead of significant changes to how payroll tax is applied to ACT general practices.
From 1 July, the ACT Government will exempt general practice revenue from bulk-billed services from payroll tax liabilities, aligning the ACT’s approach with Victoria and South Australia.
While bulk billing continues to be a challenge in the high-cost ACT, this means the 52.8% of GP services that are bulk billed in the ACT will not count towards payroll tax liabilities.
RACGP NSW&ACT Chair Dr Rebekah Hoffman said the change will be welcome and the RACGP is keen to work with the Barr Government to support affordable and accessible general practice care.
“The previous payroll tax settings affected practices’ ability to recruit GPs and provide affordable care,” she said.
“Canberra has an ageing population and many Canberrans live with chronic disease, so it’s essential they can see a GP when they need to.
“The payroll tax changes will have a significant impact on Canberra practices’ financial viability and our ability to attract GPs to work in the capital.
“We’ll work alongside the ACT Government to boost access to care, including on its planned $4 million professional development and wellbeing fund to retain GPs and attract the next generation of GPs to train in Canberra.”
An $11 million fund the ACT Government committed it in its successful re-election bid will seek to encourage more bulk billing in the ACT and expand multidisciplinary care in general practices.
Dr Hoffman said the RACGP will work with the ACT Government to support this, along with GP recruitment, GP and practice team wellbeing, and further improvements to care and patient flow through the hospital system.
“There’s a lot happening in primary care in Canberra, from the Government’s new investments to its plans to improve access to ADHD diagnosis and management by allowing GPs to provide this care,” she said.
“We look forward to working with them on implementation. Health systems work best when there’s strong coordination between care delivered by GPs in the community and the hospital services we refer our patients to.
“This is an area where the ACT has implemented exemplary initiatives. ACT Health’s GP liaison officers reduce waitlists and streamline processes in ways that make a real difference for patients and their GPs. It’s a model other jurisdictions, especially New South Wales, should be looking to for lessons in effective and efficient healthcare.
“Investments to address demand for outpatient services and reduce surgery waitlists are also welcome.
“New South Wales and other states are moving ahead with plans to improve access to ADHD care by allowing GPs to diagnose and manage patients, and the ACT is in the planning stage of its own reforms.
“Especially given the flow of people into and out of Canberra for work, we’ll support the ACT Government in its aim to have an approach to ADHD that is aligned with other jurisdictions.
“We’re also keen to discuss opportunities to support patients with better access to preventive care like free vaccination for infants and teens against meningococcal B.
“It’s low-cost prevention for an infection that is rare, but it can be fatal or result in severe scarring, loss of limbs and brain damage.”
~ENDS
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