Tuesday, 31 October 2023

Payroll tax

Gaelle BROAD (Northern Victoria) (17:44): (553) My adjournment matter relates to the Labor government’s decision to introduce a retrospective tax on GPs and other health professionals, and the action I seek is for the Treasurer to immediately withdraw this tax. Recently the State Revenue Office began issuing notices to medical practices, classifying tenanted doctors, dentists, physiotherapists and other allied health practitioners as employees rather than contractors for the purposes of payroll tax. Being viewed as employees rather than tenants means a significant increase in payroll tax. The Victorian Nationals and Liberals hosted GPs and representatives from peak medical bodies in Parliament to hear firsthand the detrimental impact of Labor’s health tax. The Labor government is backdating the tax owed by up to five years, resulting in tax bills in the hundreds of thousands of dollars impacting the viability of medical clinics across Victoria. A retrospective tax is a desperate attempt to raise funds by a government that has sent Victoria broke. One clinic received an $800,000 bill. For clinics to remain viable these costs will flow through to patients, making health care less affordable. It will mean higher out-of-pocket costs for patients and fewer bulk-billing clinics operating in Victoria.

I note the Treasurer took the very unusual step to write directly to peak doctor groups offering to reduce or waive tax liabilities for any clinics facing insolvency as a result of this tax. As reported in the Herald Sun today, it is a move that threatens to undermine the tax and has prompted more anger and confusion, as some struggling doctors will be forced to pay up while others are bailed out. It is a clear admission that this health tax is unfair and will threaten bulk-billing and force the closure of GP clinics. The Royal Australian College of General Practitioners has warned that up to 30 per cent of GPs could close at a time when there is a significant shortage of doctors across Victoria, especially in regional areas. Patients will have to travel further for care or go to emergency departments for medical attention – services that are already stretched.

Other states have made it clear that they will not introduce this tax, and Victoria should follow their example. Victoria’s health system is already under pressure, and this tax will only make it harder to see a doctor. I note that nearly 4000 people have already signed a petition to stop the introduction of payroll tax on contractors, including doctors. So far this government has refused to listen to calls from the Australian Medical Association, Australian GP Alliance and Primary Care Business Council to protect Victorian healthcare providers from this health tax. The Treasurer’s letter to peak doctor groups shows that this tax is completely unworkable and needs to be scrapped. It is already hard to see a doctor in many regional areas, and many rely on bulk-billing services to see a doctor. If the Labor government does not listen to the feedback, thousands of Victorians will be left without vital primary health care services. I call upon the Treasurer to end the confusion and immediately scrap this tax.