Payroll tax
David LIMBRICK (South-Eastern Metropolitan) (12:12): (831) My question is for the Treasurer. Recently this Parliament passed a bill that confirmed that GP clinics are liable to pay payroll tax. However, that payroll tax liability could be reduced depending on the amount of bulk-billing that the clinic does. I also note that the federal government recently announced a plan to massively increase bulk-billing arrangements. My question to the Treasurer is: what sort of impact will this have on state revenues?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:12): I thank Mr Limbrick for his question and his interest in this matter. You are correct in reflecting on changes that the house made in relation to GPs and their liability in relation to payroll tax. Specifically what we did in that legislation was provide an exemption from payroll tax for payments to contract a GP and employ GPs who are providing bulk-billing services. Our aim was to get more doctors into the bulk-billing scheme, which obviously is more accessible for a greater range of Victorians. In relation to that change, just here in Victoria, in the budget update we estimated that that exemption would cost the government around $26 million a year from 2025–26, so $26 million less in payroll tax. At the outset I would welcome the federal government’s announcement in relation to increasing bulk-billing. It is consistent with the position that we took in Victoria. They have obviously got a few more levers in relation to capacity to influence GPs and to be able to have more accessible –
Georgie Crozier interjected.
Jaclyn SYMES: They are anti more accessible GP visits over here. In relation to the impact on the budget, we will update any forecast modelling in relation to those changes, but I think what I would say is that I am more than happy to take a hit in relation to the state coffers if it means more people can access bulk-billing GP appointments.
David LIMBRICK (South-Eastern Metropolitan) (12:14): I thank the Treasurer for her answer on that and look forward to seeing the updated estimates on revenue. My supplementary question is: was the Treasurer consulted by the federal government about the potential effects on taxation revenue in Victoria before the federal government announced this policy?
Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:15): Mr Limbrick, not in any formal manner. I was just reflecting on whether it would have been part of informal conversations. It is certainly not in a formal capacity. That would be my answer.