Key Points
Labor will take urgent action on the cost of living by stopping patients paying more for GPs through committing to no GP payroll tax under a Labor Government.
Under the Liberals, Tasmania has been one of the only states that have failed to assure GPs they will not be subject to this tax. That’s why the RACGP and the AMA have supported Labor’s plan.
Labor’s commitment to no GP tax will:
- Ensure GPs do not have to pass on a $15-20 increase for consultations.
- Prevent more general practice closures.
- Prevent a further decline in bulk billing in Tasmania.
- Mean less pressure on emergency departments.
Labor’s plan to improve healthcare in Tasmania starts with supporting our doctors.
Why we need it
The Royal Australian College of General Practitioners (RACGP) and Australian Medial Association (AMA) have been campaigning on this issue Australia-wide for over 12 months, after attempts to force tax compliance in other states.
Unlike in other states, however, the Liberal Government has failed to provide certainty to GPs that they won’t implement this tax.
Rebecca White wrote to the Treasurer in September to seek this commitment in a bipartisan way, but instead of providing certainty he just confirmed that “medical centres may be liable for payroll tax”.
Tasmanians need certainty that their GP won’t be slugged by more tax. That can only happen under a Rebecca White Labor Government.
The details
Labor will act decisively in the first 100 days by ruling out a GP payroll tax. This will prevent making visits to the doctor more expensive. We will ensure that a ruling is provided to exempt GPs from payroll tax.
In a cost of living crisis, this is a simple measure that supports our dedicated GPs and means they do not have to pass on costs to patients.
What doctors say about our policy
“I want to thank the Tasmanian Labor Party, particularly Leader of the Opposition Rebecca White and Shadow Minister for Health Anita Dow, for listening to our warnings about the new interpretation of payroll tax law, which threatens access to general practice care in many states and territories, and acting so quickly,” he said.
“The commitment to a full exemption for payroll tax and no retrospective tax collection for independent GPs, who rent rooms from a practice owner, is exactly what Tasmania needs, and what we called for. This will ensure practices don’t have to increase patient fees, and it will prevent bankruptcies and practice closures – which Tasmania cannot afford.
“It will ensure Tasmanians have ongoing access to the care they need to stay healthy and out of hospital.
“And it will boost the GP workforce in Tasmania by providing certainty of the future viability of practices in our state. This will no doubt make Tasmania an attractive home for GPs affected by the payroll tax grab in other states and territories.
"I call on all other parties to match the commitment Labor has made. It’s an easy and effective way to strengthen Tasmania’s health system and ensure Tasmanians have ongoing access to the care they need.”
- Dr Toby Gardner, RACGP Tas President
“AMA Tasmania has previously raised its concern about payroll tax with the Premier, Health Minister and Treasury Secretary since this issue became a threat a couple of years ago.
“While the state government has not imposed payroll tax, the fear it could at any time has not gone away. General practice needs certainty, and this commitment from Labor provides that.
“With certainty, general practice can get back to concentrating on its core business - delivering healthcare to Tasmanians without shouldering unnecessary financial burdens.
“We do not need the cost of going to a GP to go up for patients due to a state tax. Many Tasmanians already struggle to find the money to see their doctor.”
- Dr John Saul, AMA Tas President