RACGP urges full GP payroll tax exemption
Victorian payroll tax pressure could force more general practice closures and lengthen hospital wait times unless the next State Government backs GPs, the Royal Australian College of GPs has warned.
Ahead of the Victorian election, the RACGP wants all parties to commit to a full payroll tax exemption for general practitioners.
Victoria’s health system is under heavier demand from an ageing population, rising chronic disease and growing pressure on hospitals and emergency departments.
Meanwhile, rising business costs and taxes in Victoria are making it harder for clinics to operate and keep care affordable for patients.
RACGP Victoria Deputy Co-Chair Dr Aadhil Aziz said general practice must stay financially sustainable if patients are to see a GP when they need one.
He said most general practices are small businesses with margins of about 2% to 3%.
According to the RACGP, most Victorian GPs work as independent medical practitioners and were not subject to payroll tax until recent interpretations of the law.
Dr Aziz said skyrocketing inflation and operating costs are also making it harder for practices to stay viable, recruit doctors and keep care affordable.
Queensland, Tasmania and WA
Queensland and Tasmania have introduced a full payroll tax exemption for GPs, while Western Australia chose not to apply the tax at the outset.
Dr Aziz said Victoria should follow those states to protect existing practices, support future sustainability and keep affordable care close to home.
The RACGP says backing general practice is one of the most effective health investments a government can make.
Patients with a regular GP have better health outcomes, lower mortality, fewer hospital admissions and greater continuity of care.
As a result, every dollar invested in primary care generates about $1.60 in broader health system benefits.
“The next Victorian Government has a choice. It can invest in stronger general practice now, or continue paying much more when patients end up in hospital because they couldn’t access care earlier,” Dr Aziz said.
He also said there is no substitute for high-quality care from a GP who knows a patient, their history and their community.
According to Dr Aziz, Victoria cannot build a sustainable health system by investing in hospitals alone because prevention, continuity of care and community-based healthcare help keep people out of hospital.
