Pressure is mounting on the South Australian government, with the state AMA calling for it to match Queensland on payroll tax for GPs.
The South Australian AMA says the current payroll tax burden on GPs is causing higher costs for patients relative to states such as Queensland as part of a new bid to “axe the tax”.
Queensland abolished payroll tax on general practice last year, with bipartisan support.
According to the AMA SA, both major parties in Queensland recognised the collateral costs upon both patients and the system.
Per the AMA SA, the cost of a GP visit in South Australia has increased by approximately $10 per visit as a result of payroll tax.
“My position has always been, never politicise getting a tax break, because there are some regulators out there that believe in a level playing field, and why should GPs get it and nobody else,” David Dahm, an accountant specialising in general practice business structure, told The Medical Republic.
“Which is how I guess some regulators and policy makers think as well.
“I just feel that they might be poking the bear if they keep going down this path, and it won’t just lead to more activity if they keep going here.
“It’s the accountants and the lawyers, I think that’s where this debate needs to be drawn to, and not the politicians and not the practitioners.”
The South Australian Liberal Party has committed to removing payroll tax if voted in come next year’s election, with the AMA SA calling on the Premier and Treasurer to follow suit.
“It’s an unfortunate policy misstep, because I think it’s creating a problem that it potentially never intended to cause because it’s not a tax on doctors,” AMA SA president Associate Professor Peter Subramaniam told TMR.
“It’s actually a tax on access to GP care
“Medical practices are paying 4.9% to 5% on wage costs they’ve already paying payroll tax on non-related expenses.
“But this threatens access, which in fact increases costs.”
The South Australian AMA went on to highlight the increase in external costs that are already placing additional financial pressures on clinics in the state, with payroll tax only adding to the economic dogpile.
“Taxing the frontline of healthcare is a retrograde step that costs patients more and will cost the system more than is gained in revenue,” Professor Subramaniam said.
“If the Treasurer and Premier reverse this policy, it will not be a sign of failure or weakness – quite the opposite.
“It will demonstrate that this government is responsive to the unintended consequences of this tax.”
