The Canberra Liberals will introduce legislation in the ACT Legislative Assembly next week to exempt general practitioner clinics from payroll tax.
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There has been growing pressure on the ACT government to reconsider payroll tax laws: on Thursday, the NSW government said they will pause payroll tax audits for GPs for 12 months to allow for consultation on the issue.
A NSW Supreme Court ruled general practice clinics were subject to the tax earlier this year. An appeal was thrown out in March.
![Canberra Liberals Leader Elizabeth Lee. Picture by Elesa Kurtz Canberra Liberals Leader Elizabeth Lee. Picture by Elesa Kurtz](/images/transform/v1/crop/frm/135763310/cbb7dbaf-6934-4b9f-8af8-2143c00cdf65.jpg/r0_540_5280_3520_w1200_h678_fmax.jpg)
This means some larger ACT general practice clinics could be charged and made to pay backpay from August 31.
The Royal Australian College of General Practitioners and the Australian Medical Association have called for the ACT to allow GP clinics to be exempt from payroll tax.
South Australia and Queensland have introduced an amnesty period and Western Australia said it won't change the way existing payroll tax provisions apply to general practice.
Canberra Liberals Leader Elizabeth Lee said changing the ACT Payroll Tax Act 2011 would prevent patients from paying more to see a doctor.
"It is predicted this tax will increase the cost of seeing a GP in Canberra by up to $20 a consultation as well as heavily impact on levels of bulk billing and increase the likelihood of more clinic closures," she said.
"Canberrans already pay the highest out-of-pocket costs to see a GP in the country and we have the lowest bulk-billing rates in the nation."
The amendment would need support of the Labor and Greens to pass.
ACT Health Minister Rachel Stephen-Smith has previously said she does not plan to amend the law.
"The payroll tax rules are quite clear and we don't have any intention of amending those," she said in April.
"We understand that GPs are under significant pressure in this country, and that's a national issue."
AMA ACT president-elect Dr Kerrie Aust and RACGP ACT/NSW president Professor Charlotte Hespe have met with Ms Stephen-Smith on the issue.
Opposition health spokesperson Leanne Castley said higher primary healthcare costs put a greater burden on Canberra hospitals.
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"[It is already] difficult and expensive for Canberra consumers to access their local GP and this in turn is placing more pressure on ACT public hospital emergency departments," Ms Castley said.
"The Chief Minister, Andrew Barr, is hiding behind a decision of the NSW Court of Appeal to argue that there has been no change to ACT law - and that he is therefore not responsible for imposing this 'sick tax'.
"If Labor and the Greens don't support the Canberra Liberals' amendment to remove the 'sick tax' they will remove all doubt its imposition is intentional."
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