In a major boost for the health system, the State Government will deliver permanent tax cuts to GP practices which offer bulk-billed GP services.
Wages earned by GPs for bulk-billed services provided to patients will be exempt from the tax, creating a crucial incentive for GP practices to bulk-bill.
The payroll tax exemption will apply from 1 July 2024 to all GP practices liable for payroll tax, whether their GPs are engaged as employees or deemed as contractors.
The new tax cut follows ongoing discussions with the Royal Australian College of General Practitioners SA and representations from the Australian Medical Association SA, in response to a Supreme Court decision in New South Wales last year, which confirmed GPs are liable for payroll tax.
The relevant amendments to the Payroll Tax Act 2009 will be included in this year’s State Budget bill, due to be tabled on June 6.
