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Up To 30 Per Cent Of Victorian Doctors’ Clinics At Risk Amid Proposed Payroll Tax

New data shows that up to 30 per cent of Victorian doctors’ clinics will close if the Andrews government pushes ahead to charge General Practitioners (GP)’s payroll tax.

Under Labor’s proposed Health Tax, backdated payroll tax would be imposed on local GP clinics, leading to substantial tax bills that could reach hundreds of thousands of dollars. 

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The financial burden could jeopardise the sustainability of several clinics, with repercussions that extend to patients and the healthcare system.

Shadow Minister for Health, Georgie Crozier said GPs play a vital role in providing health care to millions of people across Victorian communities. 

“This is a desperate cash grab by a Government that is broke. It will have huge ramifications for Victoria’s beleaguered health system and leave Victorians without vital health services.”

The Health Tax aims to increase out-of-pocket costs for patients and reduce the availability of bulk billing clinics.

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The NSW Government recently took a different approach by pausing payroll audits for GP practices for a year, allowing for further consultation and assessment of the tax’s implications. However, the Victorian Government has not followed such move,

The Royal Australian College of General Practitioners (RACGP) has also expressed concerns, urging Premier Daniel Andrews to address the issue to prevent practice shutdowns.

RACGP President Dr Nicole Higgins has urged the government to take immediate action.

“More practices have been coming forward that have received enormous retrospective payroll tax bills which are facing closure,” she said.

“We can’t afford to lose any practices due to this new application for payroll tax-this will be devastating for the patients and communities that lose their GPs.”

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