🚀SA Government cuts taxes to protect GP bulk-billing

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The Malinauskas Government will permanently cut taxes for bulk-billed GP practices, boosting the health system. For bulk-billed patient services, the State Government will exempt GP wages. This protects bulk-billed patients and encourages GP practices to bulk-bill. The new tax cut follows discussions with the Royal Australian College of General Practitioners SA and the Australian Medical Association SA in response to a Supreme Court decision in New South Wales last year that confirmed GPs are liable for payroll tax.

Treasure Stephen Mullighan said While there had been no change to the application of payroll tax in South Australia, it became clear that many GP practices did not understand their longstanding tax obligations. 

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The court ruling revealed that many practices were unaware of their payroll tax obligations. In June 2023, the government granted GP practices a five-year retrospective payroll tax amnesty and an additional 12 months to understand and comply with their obligations after the RACGP in SA lobbied for it. All payroll tax-liable GP practices, whether their GPs are employees or contractors, will be exempt from payroll tax from July 1, 2024. Practices that applied for the State Government's payroll tax amnesty, which expires June 30, and those that have fully met their exemptions are included. The June 6 State Budget bill will include Payroll Tax Act 2009 amendments.

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