New ‘health tax’ a ‘desperate cash grab’: O’Keeffe

By Djembe Archibald

Sep 8, 2023

Unhappy: Kim O’Keeffe says the new ‘health tax’ will put more strain on local clinics.

The Victorian Government’s new “tax” could cause a loss of health services, according to state Member for Shepparton Kim O’Keeffe.

Hold tight - we’re checking permissions before loading more content

“Patients in regional areas already face barriers when it comes to seeing a GP, with many people being made to wait several months for an appointment,” Ms O’Keeffe said.

“Labor’s health tax would mean that backdated payroll tax is levied on local GP clinics, resulting in tax bills of up to hundreds of thousands of dollars and placing the continued viability of some clinics in jeopardy.

“This new tax will ultimately lead to higher out-of-pocket costs for patients, fewer bulk billing clinics and more demand on hospitals and emergency services.”

However, the Victorian Government says the payroll tax is consistent throughout all industries.

“Payroll tax is assessed in the same way across industries and professions — there has been no change to the law or the application of the tax in relation to GPs or medical centres,” a government spokesperson said.

The NSW Government announced it would place a year-long pause on payroll tax audits for GPs to allow ongoing consultation with medical professionals, while the Western Australian Government has ruled out any expansion of payroll tax.

“Since 2014, Labor has introduced or increased nearly 50 taxes, and this latest desperate cash grab will have serious ramifications for our stretched health system and will only make it much harder to see a doctor,” Ms O’Keeffe said.

“GPs play a crucial role in providing health care to our community and in easing pressure on Victoria’s hospitals and emergency health services.”