In a move aimed at supporting the medical industry and alleviating financial pressures on general practices, the Victorian Government recently announced a series of payroll tax exemptions. This significant development follows extensive negotiations between the Royal Australian College of General Practitioners (RACGP), other health bodies, and the Victorian Government.
This payroll tax relief is a welcome change for general practices across Victoria. It not only provides immediate financial relief but also offers a clearer path forward for planning and sustainability.
Key Highlights of the GP Payroll Tax Announcement:
- Retrospective Exemption: Victorian general practices will be exempted from any outstanding or future payroll tax assessments up to 30 June 2023. This relief addresses the retrospective taxation concerns and is a significant step towards reducing the stress that many GPs and their teams have been experiencing.
- 12-Month Extension: Practices that have not yet received advice or begun paying payroll tax on this basis will benefit from a further 12-month exemption, extending to 30 June 2025. This gives practices more time to adjust and plan accordingly.
- Future Exemptions: From 1 July 2025, there will be exemptions from payroll tax for payments to both contractor GPs and employee GPs specifically for providing bulk-billed consultations. This measure aims to encourage more bulk billing and ensure affordable healthcare for Victorians.
This decision comes amid mounting pressure on the Victorian Government to align its payroll tax policies with those of other states. Currently, New South Wales, South Australia, Queensland, and the Australian Capital Territory have introduced similar amnesties or concessions. In contrast, Western Australia has confirmed it will not change its payroll tax requirements for GPs.
A Positive Step Forward
The Victorian Government’s announcement is a positive step towards supporting the medical industry, keeping healthcare costs down for patients, and ensuring the sustainability of general practices. As the RACGP and government work together on the finer details, practices can look forward to a more stable financial environment and continue their critical role in delivering healthcare to Victorians.
Note that this relief is only for medical GP’s and does not include other health care practitioners such as dentists.
For further information and personalised advice on how these changes may impact your practice, please contact our advisors at Morrows for expert guidance.