DR JOE WELCOMES PAUSE ON GP PAYROLL TAX

The proposed payroll tax on general practices is a threat to rural and regional health. 

I welcome the government's decision to pause the tax while options are considered to deal with this danger. 

There are general practices, especially in rural and regional areas, that are feeling threatened by the proposed tax and are saying they may have to close or raise fees.

General practice is at the frontline of healthcare and GPs provide a critical community service, particularly in regional and rural areas. Government policy needs to help rather than hinder their operations.

The payroll tax cuts across both the initiatives of the Federal Government in relation to bulk billing and the genuine attempts by this Government to rebuild regional and rural practices.

It runs counter to multidisciplinary general practices, a model being encouraged by both sides of politics in recent years.

So a long term solution must be found by the NSW Government in consultation with general practitioners and peak bodies.

In the meantime I believe the government is seeking time to work through the situation and I respect and acknowledge that.

Minister Houssos has announced that the NSW Government will move to pause payroll tax audits for GPs and their practices for 12 months to allow for ongoing consultation with the Royal Australian College of General Practitioners and Australian Medical Association.

There will also be a 12 month pause on tax penalties and interest accrued on outstanding payroll tax debts incurred before and at the commencement of the 12-month period.

I also acknowledge the very good consultation that I have had with Ministers Houssos and Park on the issue as I have been trying to work through a way forward with them. 

And I commend the willingness of Minister Houssos, who has carriage of this matter,  to work with the Australian Medical Association (AMA) and the Royal Australian College of General Practitioners (RACGP) to develop a long term solution. 

This is an issue I will continue to monitor closely.

Yesterday afternoon the State Opposition moved an amendment to the Revenue Fines and Other Legislation Amendment Bill 2023 in the NSW Legislative Council that would have exempted general practices from the payroll tax and I welcome that move. 

However, it is disappointing that this amendment has come when they are in opposition because the fact is this issue has been alive for the past five years and could have been addressed when they were in government. 

No other state provides exemptions to this ruling.

If there are not to be exemptions, then at the very least I believe we need certainty and clarity going forward, there should be no retrospectivity and there should be provision for doctors to genuinely work independently in group practices without the practice requiring to pay payroll tax.