Brisbane, October 9 (Indian Abroad Newsdesk)
It’s been years in the making, but Queensland has formally become the first state to permanently exempt general practitioners (GPs) from payroll tax – provided Labour wins this month’s election. A wave of relief swept through the medical community last night as Labor and the opposition Liberal National Party committed to the exemption – meaning GPs won’t have to pay payroll tax, regardless of the election outcome on October 26.
News on this step follows intense and wide lobbying by GPs, led by Queensland GP and a former vice president of the Royal Australian College of General Practitioners, Dr. Bruce Willett, on this front. For GPs, this exemption is much more than a victory for their profession; it is also a victory for patients. Without the burden of payroll tax, practices should not have to shift extra costs over to patients. Thus, more consultation fees might be avoided and access to health care improved better.
This is something Queensland GPs have been campaigning on for years. Queensland GPs had long suffered from a cumbersome concession—a government amnesty that only pushed forward payroll tax payments on GP contracts to June 2025. An amnesty provided temporary relief but its uncertainty left many practitioners worried.
There, the clamour for permanent exemption gained momentum after a ruling by a NSW court sent alarm ringing: it required that medical centres pay payroll tax on GPs. The rulings were responsible for rampant fear of exorbitant costs and the possible closure of practices. The GPs in Queensland have already been subjected to tax bills of as much as $5 million and were dismayed at the thought of having to debate relocation to states with less stringent taxation. Still, pressure is mounting on Labour in New South Wales and Victoria, with the election yet to be finalized.
Recently Queensland Labor Treasurer Cameron Dick confirmed if returned, Labor will legislate permanent exclusion of GPs from payroll tax. However, he dismissed claims the tax was ever a “patient tax”, despite fears this is one of the worst words ever used about a tax by a government.
One of the bigger issues just before the election will be the payroll tax exemption for GPs. This resolution will set a precedent and encourage other states to review their strategy on providing support to healthcare providers.
