Questions Around More Expensive GP Visits in Queensland Becomes Hot Topic in State Election

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The state opposition has aired concerns that an amnesty on general practitioner (GP) payroll tax set to expire next year could put an end to bulk-billing by doctors in Queensland.

Liberal National Party (LNP) Opposition Leader David Crisafulli raised the issue during the Nine network’s Great Debate on Oct. 3, suggesting Labor had plans to return the tax if re-elected.

Under current conditions, some GP clinics are exempt from paying payroll tax, but once the amnesty is over, all clinics would be required to comply.

Payroll tax is controlled by the state and is calculated based on the total wages paid by a business each month. A state government amnesty currently applies until mid-2025.

There are concerns that if all GP clinics are forced to comply, the cost of the tax would be passed on to patients, leading to higher costs or the demise of bulk billing.

Exemptions from payroll tax would exist for patients who make direct payments to an individual medical practitioner.

The LNP has vowed to scrap the tax if elected.

During the debate, Crisafulli said the Australian Medical Association (AMA) had labelled it a “patient tax” over fears costs would be passed on to the most vulnerable.

“The AMA says the patient tax, that comes in after the election and is slated to generate $100 million (US$68 million) per annum in the budget, will see the death of bulk billing,” he said.

“It will mean that surgeries will close, and it will put pressure on our emergency departments that are already buckling at the seams.

“Why would you embark, in the middle of a health and cost of living crisis, on a patient tax that makes it dearer to go to see the GP and puts more pressure on a buckling system?”

In response, Queensland Premier Steven Miles told Crisafulli there was “no such thing” as a patient tax, but stopped short of denying Labor would apply payroll tax for GP clinics across the board once the amnesty had expired.

Miles focused, instead, on additional services being offered by the government for those who were unable to consult with a GP.

“What we are doing though, is stepping in to provide those primary healthcare services ... we opened another one of our nurse-led clinics where Queenslanders can walk in, without an appointment, and get that care,” he said.

“We are also making sure all of our pharmacies can deliver many of the services that, in the past, people would need a GP’s appointment to get because at the moment, people struggle to get one. So, we are putting measures in place to make sure Queenslanders can get the primary care they need.”

Miles said Labor had increased bulk billing rebates and that rebates needed to continue to increase to avoid over-burdening hospitals.

AMA’s Concerns Over Tax

AMA Queensland Immediate Past President and GP Maria Boulton said it was “immoral” to allow a tax that would be detrimental to people who are most in need.

“It will affect people who are the most vulnerable, so people who visit the GP more often, those with chronic illness, those with mental health issues and those with young families,” she said in a statement.

“AMA Queensland absolutely welcomes the LNP’s commitment to abolish this patient tax.

“We know for a fact that more people than ever are putting off medical care because of cost-of-living pressures. This patient tax will add more out-of-pocket costs to patients, particularly in aged care facilities.”

Boulton said the estimated extra cost for a trip to the doctor could be between $6 and $30.

“Currently we do have an amnesty. But everyone’s concerned about the changes coming next year, and we know that there will be pressures on bulk billing rates if this patient tax continues,” she said.

Boulton said there was a need for clarity.

“While we thank the government for the amnesty and the Queensland Revenue Office for its public ruling clarifying that payments made by a patient directly to a GP will not attract this new tax, there is still too much uncertainty,” she said.

“GPs remain concerned that they will be audited when the amnesty ends or what will happen when federal MyMedicare payments are implemented next year.

“Additionally, non-GP private specialists are not eligible for the amnesty and have no certainty that they will not be hit with crippling retrospective bills out of the blue.”

MyMedicare is a federal scheme that will provide additional funding to their regular clinic elected by a patient.

Economist’s Outlook

Chief economist at the Australian Taxpayers’ Alliance and Director for the Australian Economic Education Foundation John Humphreys says GP clinics will be affected by the tax.

“The LNP are right to warn about the impending tax increase for some GP clinics under Labor, and the Australian Taxpayers’ Alliance supports the LNP policy of removing payroll tax from doctors,” he told The Epoch Times.

“We would like to see both major parties go one step further, and increase the payroll tax threshold up to $2 million, so that more small businesses across all industries can escape the cost and complexity of dealing with the payroll tax system.”

About the Amnesty

The GP clinic amnesty came about in 2022 after courts ruled that GP clinics should be treated as single businesses rather than a network of independent contractors. This resulted in many clinics being moved above the payroll tax threshold and making them liable for payroll tax.

States including Queensland gave clinics a temporary concession - the amnesty - so they had time to restructure.

The LNP have vowed to make the concession permanent, but Labor’s response is that GP clinics can restructure so that money goes directly to doctors, avoiding the payroll tax.