Media Release

Australian General Practice Alliance (AGPA) Welcomes Decision on Payroll Tax

22/05/2024

The Australian General Practice Alliance (AGPA) Deputy Chair Dr Mukesh Haikerwal AC and Director Dr Sarah Lewis today welcomed the decision by the Victorian Government to exempt all Victorian General Practice businesses from any outstanding or future assessment issued for Payroll Tax on payments to contractor GPs for the period up to 30 June 2024, and a further 12-month exemption from Payroll Tax for payments to contractor GPs, through to 30 June 2025. This will be available for any General Practice business that have not already received advice and begun paying Payroll Tax on payments to their contractor GPs on this basis.

AGPA along with other medical peak bodies in Victoria has been actively advocating for these changes on behalf of General Practice owners and patients. AGPA has sought clarity, consistency, stability and a fair and understandable system to work with. This decision builds on months of work includes a petition with the Vic Opposition and negotiations with the Victorian Treasurer.

In a joint statement Dr Haikerwal and Dr Lewis said the removal of the retrospective application of the Payroll Tax on contractor GP payments gives certainty to the industry and the extension to 2025 provides General Practices an opportunity to review their business structures and approach to continue to deliver high quality primary care to Victorians,” they said.

“General Practice businesses are a key component of the delivery of primary health care in Victoria and for this to continue they must be both viable and thriving. The Government’s decision today goes some way to provide certainty and allows time for necessary business planning.”

The decision to exempt payments to contractor GPs from Payroll Tax and employee GPs for providing bulk-billed consultations from 1 July 2025 should help to maintain current levels of bulk-billing consultations.

AGPA also welcomes the recognition by the Victorian Government of the importance of General Practice in maintaining the primary health of the community.

“We thank the Victorian Government for its decision and commitment to the primary care sector as this outcome will support practices to remain viable into the future and help Victorians continue to have access to affordable services as we work together through the details to ensure affordability of health services to Victorians. GPs can now focus on caring for their patients and the health system,” Dr Haikerwal and Dr Lewis said.

For media inquiries or further information, please contact:

Dr Mukesh Haikerwal, AGPA Deputy Chair

Dr Sarah Lewis, AGPA Director

 

About AGPA

The Australian General Practice Alliance (AGPA) is Australia’s leading association of independently owned General Practices working to ensure high-quality healthcare delivery to all Australians.

AGPA represents the interests of GP Practice Owners, addressing issues faced by Principal-led General Practices.

The Australian model of GP owned private general practice has been responsible for our international reputation as an efficient and highly effective primary health care service.

The continuation of high quality primary healthcare in Australia is dependent on the continued viability of the Practices that provide the leadership and infrastructure that allows GPs to practice, and patients to access the healthcare system.