Victorians could face more practice closures and longer wait times at already stretched hospitals unless the next State Government backs general practice, the Royal Australian College of GPs (RACGP) has warned.
The state health system is facing growing demand driven by an ageing population, rising rates of chronic disease, and increasing pressure on hospitals and emergency departments.
At the same time, rising business costs and taxes in Victoria, including payroll tax, are making it increasingly difficult to operate a general practice in the state, threatening patient access to affordable healthcare.
Ahead of the Victorian election, the RACGP is calling on all parties to commit to a full payroll tax exemption for general practitioners, saying it is one of the most practical ways to protect affordable patient care.
“If we want Victorians to see a GP when they need one, general practice has to be financially sustainable,” RACGP Victoria Deputy Co-Chair Dr Aadhil Aziz said.
“Victoria is dubbed ‘the most taxed state in Australia’ and it is devastating small businesses.
“Most general practices are small businesses, and the margins are extremely thin, about 2–3%. Most Victorian GPs practise as independent medical practitioners and weren’t subject to payroll tax until recent interpretations of the law.
“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.
“Queensland has recognised the importance of general practice and delivered a full payroll tax exemption for GPs, as has Tasmania. WA decided against this tax grab at the outset. Victoria should join them.
“This 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.”
The RACGP said supporting general practice is one of the most effective investments in health a government can make.
Patients with a regular GP experience better health outcomes, lower mortality, fewer hospital admissions and greater continuity of care. Every dollar invested in primary care generates around $1.60 in broader health system benefits.
“There is no substitute for high-quality care delivered by a GP who knows you, your history, and your community,” Dr Aziz said.
“Victoria cannot build a sustainable health system by investing in hospitals alone. The strongest health systems invest in prevention, continuity of care, and community-based healthcare – this keeps people healthy and out of hospital.
“The next Victorian Government has a choice. It can invest in stronger general practice now, or continue paying much more when patients end up in hospital because they couldn't access care earlier.”
RACGP Victorian Election Priorities
In addition to payroll tax reform, the RACGP is calling on the next Victorian Government to deliver four further reforms to strengthen patient access to care.
(All quotes attributable to RACGP Victoria Deputy Co-Chair Dr Aadhil Aziz.)
Improve Access to Severe Acne Treatment
The College is calling for reforms to allow GPs to be able to prescribe oral isotretinoin (Roaccutane) for severe acne.
“Patients should not face lengthy waits and significant costs to access treatment that can be safely delivered by their GP.”
Support Victoria’s Most Vulnerable Children
The RACGP is calling for funding to cover the cost of medicines for children in foster and kinship care.
“No child should miss out on essential treatment because of financial hardship.”
Expand Access to Addiction Treatment
The RACGP is calling for scaled incentives and mentorship support for GPs who provide Medication Assisted Treatment of Opioid Dependence (MATOD).
“Supporting more GPs to provide MATOD will improve access to lifesaving treatment and strengthen Victoria’s addiction medicine workforce.”
Reinstate the Chief General Practice Adviser
The RACGP is calling for the reinstatement of the Chief General Practice Adviser position to ensure general practice expertise is represented within government and health system decision-making.
“GPs are the cornerstone of healthcare and deserve a seat at the table when health policy is developed.”
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The Royal Australian College of General Practitioners (RACGP) is the voice of general practitioners (GPs) in our growing cities and throughout rural and remote Australia. For more than 60 years, we’ve supported the backbone of Australia’s health system by setting the standards for education and practice and advocating for better health and wellbeing for all Australians.
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