The RACGP is urging Labor to match the opposition party’s commitment and do away with payroll tax on general practice.
GPs in Victoria say there is fresh hope for a full payroll tax exemption should the Liberal and National parties form government in November.
It comes after opposition leader Jess Wilson seemingly confirmed that her proposed tax reforms would “provide payroll tax exemptions for GPs” in an article published in Nine Newspapers at the weekend.
RACGP Victoria president Dr Anita Muñoz told The Medical Republic that the pledge was locked in over 12 months ago.
“Now that we are in the election year, they have repeated their promise to us alongside their national party collaborators – that if they are elected, they will provide an exemption to payroll tax for general practice independent contractors,” she said.
“We did know that that was what they were going to offer, but [that] they’re repeating that, particularly as we are moving now towards the election campaign proper, indicates that the party understands just how difficult it is for practices and for small businesses to survive in our state.
“We need to do something quickly before more small businesses, and in particular general practices, close and are lost forever.”
While Victoria does have special provisions in place for GP clinics in relation to payroll tax, it is not the complete legal exemption enjoyed by doctors in Queensland.
Instead, practices can get a partial exemption based on the proportion of “fully funded” – aka bulk billed – work that they do.
A fully bulk billing practice, for instance, is theoretically exempt from payroll tax on its GP contractors.
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Dr Muñoz’s co-deputy chair Dr Aadhil Aziz called the commitment a “relief” and challenged all parties and candidates running for election to match the pledge.
“Scrapping the extra cost of payroll tax will not only protect existing practices and their patients, it will also help to ensure the sustainability of general practice into the future,” he said.
“We want all Victorians to have access to affordable care close to home, and there’s no substitute for high-quality care delivered by a GP who knows you, your history, and your community.”
The Victorian state election is on Saturday 28 November, 2026.
