19 March 2024
The Greens will this week move a motion in State Parliament calling on the Malinauskas Government to rule out applying payroll tax to fees paid by patients directly to a GP as the Royal Australian College of General Practitioners (RACGP) warns that a new interpretation of payroll tax law is crippling general practice care.
In 2023 the NSW Court of Appeal found that GPs, who pay a percentage of their earnings to a clinic rather than being paid a wage, count as employees for payroll tax purposes. The RACGP secured an amnesty for practices in South Australia, but this expires 30 June 2024 after which the RAGCP warns many practices will be forced to raise patient fees. Only the Queensland Government has confirmed that patients' fees paid directly to a GP for their services will not be subject to payroll tax.
"Access to general practice care is crucial to ensure we have a healthy community and to reduce the strain on our emergency departments and hospitals,” said Greens SA Health Spokesperson Robert Simms MLC.
“Many South Australians are already struggling to afford seeing a GP in the middle of this cost-of-living crisis. The Malinauskas Government must follow the lead of the Queensland Government and clarify that patients’ fees paid directly to a GP for their services will not be subject to payroll tax. Otherwise, there is a real risk that people will be unable to afford access to a GP, leading to medical issues becoming acute or chronic.”
A survey released by patient engagement platform HotDoc has revealed that 95% of clinics are planning to increase patient fees by an average of $12 per appointment in response to the payroll tax and only 28% of patients would continue to see their regular GP if fees increase.
The text of the motion is below.
The Hon. Robert Simms to move -
That this Council -
I. Acknowledges that:
(a) The Royal Australian College of General Practitioners South Australia (RACGP SA) has launched a campaign for the State Government to stop applying payroll tax to General Practitioners;
(b) South Australia is in the middle of a cost-of-living crisis and many people are already struggling to cover the costs of essentials like medical appointments;
II. Notes that:
(a) The patient engagement platform HotDoc has released figures that show that 95% of clinics are planning to increase patient fees by an average of $12 per appointment in response to the payroll tax and only 28% of patients would continue to see their regular GP (albeit less regularly), if fees increased;
(b) the Queensland Government has provided a payroll tax ruling clarifying that patients’ fees paid directly to a GP for their services would not be subject to payroll tax; and
III. Calls on the Malinauskas Government to align with the Queensland Government’s approach to rule out payroll tax on patients’ fees paid directly to GPs for their services.