AMA VICDOC Winter 2025 - Magazine - Page 86
A DVO CACY W I N S, CU R R E N T C H A L L E N G ES,
A N D T H E ROA D A H E A D
INTERSTATE COMPARISONS
FUTURE ADVOCACY
Approaches to payroll tax on contractor
GP payments continue to vary
significantly across Australia, despite a
stated goal of national harmonisation.
Queensland has legislated a full
exemption for payments to GPs. New
South Wales provides relief where at
least 70% of consultations are bulk
billed, and South Australia exempts bulk
billed consultations entirely. In Western
Australia and Tasmania, payroll tax is
generally not applied to contractor
GP arrangements, but this stems
from differing interpretations
of existing legislation rather than
explicit exemptions.
Victoria’s decision to exempt fully
funded services from 1 July 2025 brings
it partially into alignment with the
approaches taken in NSW and SA. Unlike
jurisdictions such as Queensland and
Western Australia, however, Victoria has
opted not to exempt privately billed GP
services — an outcome likely shaped,
at least in part, by the state’s difficult
fiscal position. Victorian practices
have nonetheless benefited from a
comparatively longer amnesty period
than NSW and SA — including ex gratia
relief for past liabilities — secured
through sustained advocacy by
AMA Victoria and others.
Looking ahead, AMA Victoria will continue
strong and sustained advocacy on payroll
tax, particularly in the lead-up to the
2026 State Election. We are seeking
bipartisan support for fairer, clearer
payroll tax arrangements across both
general and specialist practice. While the
Victorian Coalition has pledged to abolish
payroll tax on all contractor GP payments
if elected, AMA Victoria will continue to
press all parties to clarify and improve
their policy positions.
To strengthen our advocacy on behalf of
non-GP specialists, AMA Victoria will launch
a new Private Specialist Policy Council from
1 July 2025, chaired by immediate past
President Dr Jill Tomlinson. This Council will
help shape our broader engagement and
ensure that specialist concerns are directly
reflected in our approach. Meanwhile,
our existing Council of General Practice
continues to advise on this issue from a
general practice perspective.
We also recognise that many practices
may ultimately face higher operating costs
and may need to communicate this to
patients if they choose to pass on payroll
tax costs rather than pursue potentially
complex and uncertain restructuring.
AMA Victoria is exploring options to
support practices in this regard.
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Payroll tax is already payable on the wages of employees in medical practices- including receptionists,
administrative staff, and nurses- where total taxable wages exceed $900,000 per annum (rising to
$1,000,000 from 1 July 2025) under the current Victorian threshold. The issue at hand is the extension
of that liability to independent contractor doctors, who have historically been regarded as running their
own business within a practice.
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