Stop introduction of payroll tax on contractors including doctors

The Petition of certain citizens of the State of Victoria draws to the attention of the Legislative Council that the introduction of a payroll tax on contractor doctors, otherwise known as tenant doctors in medical practices, is regressive, unfair and unjust.

The classification is erroneous. Complications with compliance with the State Revenue Office makes it clinically unsafe to provide care in that manner. The costs of complying with notifications will put large numbers of general practices out of business. Services not being provided by general practice will then have to be provided for in the state hospital system at a 10 to 20 factor increase in cost and inconvenience.

The extent of this process goes beyond medicine and health. It affects all small businesses that use contractors in their processes. The department needs to discuss this and prevent it from being implemented.

The petitioners therefore request that the Legislative Council call on the Government to stop the introduction of a payroll tax on contractor doctors and contractors in other health businesses needing deployed services.