Peak general practice groups say the Victorian Government’s $10 million to support GPs is welcome recognition of the devastating impact of the state’s Patient Tax, but it won’t save general practice care or help Victorians with the cost-of-living crisis.
The Victorian Budget delivered today includes $10 million to support GPs through a co-designed grant program.
The Royal Australian College of General Practitioners (RACGP), Primary Care Business Council (PCBC), and Australian GP Alliance (AGPA) have repeatedly urged Victoria’s Premier to intervene in the state’s GP payroll tax fiasco.
Survey data from HotDoc has shown practices will have to raise fees by 30% to cover the extra tax, and 4% of patients will go to hospital rather than a GP if they have to pay more. This will blow out the State Budget and worsen the logjam in Victoria’s hospitals. Just last week a patient died waiting for a bed when the emergency department was reportedly standing room only at Maroondah Hospital.
RACGP, PCBC and AGPA are calling for:
no retrospective collection of payroll tax liabilities, which will cause practice bankruptcies and closures
Victoria to follow Queensland and provide a new tax ruling, clarifying that patients’ fees paid directly to a GP for their services won’t be subject to payroll tax
a compliance period to allow practices to adjust to the new ruling so they don’t have to pass the tax on
RACGP Victoria Chair Dr Anita Munoz said: “While any investment in general practice care is always welcome, the Victorian Government’s $10 million to support GPs will not save us from the Patient Tax – it’s like putting a bandaid on a patient who’s lost both their legs.
“This State Budget will worsen the cost-of-living crisis for Victorians and is a huge disappointment to GPs, practice teams and our patients. The Government knows practices can’t afford the state’s extra payroll tax, and neither can their patients.
“General practice helps people stay healthy – everyone needs a GP. Victoria’s Patient Tax will be devastating for our health system. When people can’t afford care, they get sicker, and we’ll see more Victorians forced into the state’s overflowing hospitals, which will rapidly blow out the State Budget.”
“This was a golden chance for the Victorian Government to send a message to the community that they were doing all they can to address cost of living pressures – instead they’ve ensured going to the doctor will get more expensive, if you can find a local GP with the doors still open,” said PCBC President Dr Ged Foley.
