As it promised before the election, the territory’s Labor government has dropped the requirement for 65% bulk-billing for tax relief.
The ACT’s Labor government has made good on its election promise to the territory’s GPs by scrapping the requirement for GP practices to hit a 65% bulk-billing target to receive payroll tax relief.
The ACT had a payroll tax amnesty in place for general practice, which ended at the end of last month.
Prior to the last election, held on 19 October 2024, the government’s policy was that from 1 July 2025, GP practices would have to bulk bill at least 65% of their patients to have their payroll tax liabilities waived for two years as long as they registered with ACT Revenue and MyMedicare.
But in September, as reported by TMR, ACT Labor flipped, matching the Liberals’ promise to exempt GPs from payroll tax on income generated by bulk-billing, bringing the territory in line with regulations in Victoria and South Australia (although SA may be changing things).
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At the time health minister Rachel Stephen-Smith said the backflip was in response to feedback from stakeholders about the practical operation of payroll tax liabilities in general practice.
Regardless of the reasons, as of 1 July the Labor government has kept its promise in a move RACGP NSW and ACT chair Dr Rebekah Hoffman said was a good one.
“The previous payroll tax settings affected practices’ ability to recruit GPs and provide affordable care,” Dr Hoffman told newsGP.
“Canberra has an ageing population and many Canberrans live with chronic disease, so it’s essential they can see a GP when they need to.
“The payroll tax changes will have a significant impact on Canberra practices’ financial viability and our ability to attract GPs to work in the capital.”
This article was updated on 10 July. It previously stated that GPs in the ACT had an exemption from payroll tax; the exemption is specifically on taxable income from bulk-billing.
