Following significant campaigning from the Victorian opposition, Treasurer Tim Pallas announced that contractor and employee GPs providing bulk-billed consultations will be exempt from payroll tax.
Before, the tax increased the cost of visiting a doctor by nearly 30 per cent, putting many clinics at financial risk.
State Member for Shepparton Kim O’Keeffe said that with the bill scrapped, healthcare providers can now keep offering essential bulk-billing services.
“Our local GPs and healthcare providers can now continue offering bulk-billed services without the fear of financial strain and without having to resort to passing the cost on to their patients,” Ms O’Keeffe said.
State Member for Northern Victoria Wendy Lovell said this was the right outcome for Victorian patients and GPs.
“Labor’s unfair Health Tax was making it more expensive to see the doctor at a time when people are already doing it tough in a cost-of-living crisis,” Ms Lovell said.
State Member for Euroa Annabelle Cleeland said that while this is a win, more work is needed to address regional Victoria’s healthcare crisis.
“For months, Labor ignored healthcare professionals about the significant impact their insidious Health Tax was having on both patients and our health system,” Ms Cleeland said.
In October 2023, the Victorian Opposition introduced a private members bill to amend the Payroll Tax Act 2007 and stop the tax.
Health industry experts warned the tax could close many practices, end bulk-billing, raise doctor visit costs, and push more patients to emergency departments.
This win will ensure that visits to the GP remain affordable.
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