The Victorian Liberals and Nationals have ensured visits to the GP will remain affordable and saved bulk-billing as the Allan Labor Government announces a long-overdue scrapping of its insidious Health Tax.
In a significant backflip following months of campaigning from the Victorian Liberals and Nationals, Treasurer Tim Pallas yesterday announced Labor will exempt contractor GPs and employee GPs who provide bulk-billed consultations from payroll tax.
Previously, Labor’s Health Tax applied payroll tax for the first time on contractor GPs in health clinics across the state, adding almost 30 per cent to the cost of visiting a doctor and threatening the financial viability of many clinics.
In October 2023, the Victorian Liberals and Nationals introduced a Private Members Bill in the Victorian Parliament to amend the Payroll Tax Act 2007 to stop the Health Tax.
The Nationals Member for Shepparton District Kim O’Keeffe said the Allan Labor Government’s backflip on the Health Tax shows how out of touch they are and the detrimental consequences on the health system of their poor financial management.
“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,” she said.
“At a time when many families in our region are struggling with the cost-of-living crisis, Labor’s unfair Health Tax was an additional burden they could not afford.
“Bulk-billing can be the difference between a patient seeking a medical appointment. The health tax was putting people’s lives at risk and GP clinics at risk of shutting down.”