Werribee MP and state treasurer Tim Pallas has been warned that bulk billing within his own electorate will disappear if Victoria’s GP payroll tax isn’t changed.
Last year, Victoria’s State Revenue Office ruled that doctors working in GP clinics were employees and therefore liable for payroll tax.
Previously, receptionists, GPs-in-training, and nurses working in GP clinics were subject to payroll tax, but doctors were considered independent contractors and were exempt.
Dr Ged Foley, who owns the bulk-billing Manor Lakes Medical Centre within the Mr Pallas’ Werribee electorate, said the if the payroll tax isn’t withdrawn he’ll have to start charging patients up front.
“This tax is a tax on bulk billing. There is no viable way for doctors to continue bulk billing and cover the cost of this destructive new tax, patients will end up having to foot the bill,” he said.
Dr Foley said Mr Pallas’ electorate of Werribee had the second highest rate of bulk-billing in the country, meaning his own constituents were especially vulnerable if the payroll tax remained.
According to modelling from the Primary Care Business Council, an additional 22,000 patients will present to the emergency department at Werribee Mercy hospital each year at a cost of around $14.3 million, because of a reduction in bulk-billing services caused by the payroll tax.
Despite a growing campaign from GPs and even the Federal Health Minister Mark Butler expressing concern about the payroll tax, the state government has so far resisted calls to change it, though Treasurer Pallas has previously said he would intervene to prevent GP clinics from closing.
A government spokesperson said support for GP clinics was being provided.
“We have stepped into primary care delivering $32 million to support graduate GPs, establishing 29 Priority Primary Care Centres and rolling out the community pharmacy pilot,“ the spokesperson said.
“There is always more to do to support our GPs and we will continue to meet with representatives from industry as well as local GPs in the community.“
The government is believed to be establishing a working group with peak medical bodies to address issue arising from the payroll tax.
Dr Ged Foley said such were the extra costs on his Manor Lakes surgery from the payroll tax, that it wasn’t just bulk-billing services that were at risk.
“All options have got to be on the table. It is barely viable.”
