RACGP applauds LNP for abolishing payroll tax on GPs

The Royal Australian College of General Practitioners (RACGP) has praised the Crisafulli Government for instructing Treasury to abolish payroll tax on GPs, making general practice care more affordable for all Queenslanders. 

RACGP Queensland Chair Dr Cath Hester applauded the new government for acting on the College’s calls. 

“As Australia’s peak body for general practitioners and GP training, the RACGP has long advocated for this tax to be abolished, and I’m thrilled the Crisafulli Government has instructed Treasury to do so. 

“This will help to ensure essential GP care stays affordable for Queenslanders, and practices can remain viable and keep their doors open for patients.  

“It’s also a big relief for GPs across our state, who just want to get on with their job helping Queenslanders stay healthy and out of hospital and reducing pressure on our health system. 

“The RACGP encourages all other states and territories follow Queensland’s lead in abolishing this tax and improving access to affordable GP care for all Australians.”  

Practices across Australia have always paid payroll tax on their employees, including receptionists and nurses, but it never applied to GPs because they work independently. This changed after a final ruling by the NSW Court of Appeal in 2023 deemed independent practitioners as employees for payroll tax purposes.   

Queensland was the first state to listen to the RACGP and provide an amnesty to prevent practices going bankrupt due to retrospective tax. It was also the first state to issue new Revenue Office ruling that patients’ fees paid directly to a GP for that GP’s services will not be subject to payroll tax.