In a major win for GPs and patients across Queensland, the Labor Government has accordingly promised to exempt general practice from payroll tax, regardless of the election outcome later this month. This decision brings much-needed relief to thousands of GPs who were concerned about significant cost increases once the current payroll tax amnesty ends on June 30, 2025.
The move has been praised by key industry bodies, including AMA Queensland and RACGP, who have long lobbied for this outcome alongside general practitioners.
Dr. Bruce Willett, Queensland GP and prior RACGP Vice President and State Chair, said this announcement is the result of years of advocacy. He explained, ” Practices will be spared of the significant cost and patients will be better off.” He also emphasised, ” This is great news for GPs, but particularly great news for patients who would ultimately have had to absorb the cost and have to pay.”
AMA Queensland President Dr. Nick Yim echoed this relief, saying, ” This decision to exempt general practice puts an end to uncertainty for these practices and their patients and is a great announcement.”
What does this mean for clinics in QLD?
- Financial relief and improved patient care – Clinics are able to enjoy reduced financial stress, allowing practice owners and GPs to focus more energy on providing the best possible patient care without the pressure of rising operational costs.
- Maintained affordability of healthcare – With the exemption set to be in place, clinics can continue providing affordable care to patients. This is particularly crucial given that a RACGP study found only 3% of clinics felt they could absorb the new costs without passing them on to patients, especially important during the current cost-of-living crisis.
AMA Queensland calls for broader reforms
While the decision has been welcomed, AMA Queensland has urged the government to extend this exemption to all private medical practices, much like public hospitals and most private hospitals, which are already exempt from payroll tax.
AMA Queensland and RACGP have also strongly advocated that others states follow Queensland’s lead and abolish Payroll tax for GPs.
For further information please see:
1. AMA Queensland. (2023). “Payroll tax decision a win for patients.” https://www.ama.com.au/qld/news/Payroll_tax_decision_win_for_patients
2. RACGP. (2023). “Queensland to abolish GP payroll tax.” https://www1.racgp.org.au/newsgp/professional/queensland-to-abolish-gp-payroll-tax