THE Royal Australian College of General Practitioners and the AMA ACT have slammed the ACT government’s decision to impose an additional payroll tax on Canberra’s GPs.
With the viability of general practice in the nation’s capital continuing to come under pressure, GPs would have little option
but to pass the additional tax on to patients, the GP groups said in a media statement on Sunday.
A poll of practices across Australia found only 3 per cent would be able to absorb the costs of the additional payroll tax on
independent GPs – 78 per cent would be forced to raise fees.
General practices already paid payroll tax on their employees, including receptionists, GPs in training and nurses. The
ACT government’s additional payroll tax had not previously been applied to GPs because most GPs are independent
contractors, leasing rooms from a practice owner and working independently.
RACGP president Dr Nicole Higgins said the ACT government needed to recognise the devastating impacts of the
additional tax on essential general practice services.
“We have consulted with the ACT government, and their new policy shows they have a limited understanding of the way
general practice works or the pressure GPs are under in the ACT,” she said.
“They also don’t understand how bulk billing works. It’s designed to ensure that the most vulnerable people in our community can get the care they need – the federal government’s tripling of bulk billing incentives is only for people on healthcare cards, pensioners, and children.
“The ACT government has announced a temporary payroll exemption, but only for a small minority of practices that are
able to bulk at least 65 per cent of services and remain viable.
“Canberra is one of the most expensive places to run a practice, and we have already seen practices forced to close
because they simply can’t afford to keep the lights on.
“It will be absolutely devastating for the community if more of their local practices are forced to close, and GPs leave town.
While the ACT government may collect more payroll tax in the short term, it will cost much more in the long run because it will result in more people going to hospital, which is much more expensive.
“I’m calling on the government to come back to the table to consult with GPs and find a real solution before it’s too late.”
Dr Kerrie Aust, AMA ACT president-elect and a GP in Wanniassa, has echoed these concerns.
““The additional payroll tax ignores the precarious state of general practice in Canberra – a city with the lowest number of GPs per head of population of any Australian capital city, a city where GP training positions remain vacant year after year, a city where high-quality practices close their doors, a city where, when good GPs retire, they struggle to find someone who is willing to take over their patients,” she said.
“Not only this, but the additional payroll tax threatens better integration of primary care. With GPs working to make
general practice the home for wrap-around, linked up care, working closely with nurses and allied health professionals,
the additional payroll tax works in precisely the opposite direction.
The additional tax will push GPs away from a better integrated model of care and to an increasing focus on maintaining their ability to offer affordable care.”
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