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Proposed payroll hike for GPs a 'tax on sick people', expert says

The proposed payroll tax on independent general practitioners could cost patients an extra $20 with Australia's former deputy chief medical officer deeming it a "tax on sick people".
New South Wales and Victoria revenue offices recently ruled independent GPs would be hit with a 5.45 per cent and 4.85 per cent payroll tax respectively - estimated to cost patients an extra $20 per appointment.
It comes after the federal government announced in its budget - aimed at strengthening Medicare - that it would increase bulk billing incentives for children under the age of 16, pensioners and Commonwealth concession card holders.
But former deputy chief medical officer Nick Coatsworth told 2GB's Ben Fordham the payroll tax will essentially "wipe out" the federal government's bulk billing incentives.
"There's no other way to describe this than a tax on sick people," he told the Nine radio station.
"On November 1, when these bulk billing incentives were going to increase, more Australians would be bulk billed, people with concession cards would have more affordable access to the GP, and state treasurers have seen this ruling and said, 'Oh, here is some money we can get from the feds.'
"Just because there's a court ruling doesn't mean you have to put your hand in the pockets of sick people."
Person receiving blood pressure test, doctor, health, medical.
Independent GP clinics will be hit by a payroll tax in NSW and Victoria. (9News)
Currently, general practices pay payroll tax on employees including receptionists, GPs in training and nursing but it hasn't applied to GPs as most doctors are not employees, instead leasing rooms from a practice owner and working under independent agreements.
Coatsworth urged NSW Premier Chris Minns to "back off" and not apply the payroll tax to GPs as it would place more pressure on already strained emergency departments.
"You can elect not to, maybe spend the money you've got in a better way and stop taxing sick Australians," he said.
Royal Australian College of GPs president Nicole Higgins said implementing a payroll tax will eliminate the bulk billing incentive introduced by the federal government.
"State governments are ripping funding from general practice to boost their own tax revenues," Higgins said.
"GPs and their patients are caught in the middle, and it is the patients who will be hurt most when they lose their local GPs and access to essential care."
A Victorian Government spokesperson said: "Payroll tax is assessed in the same way across industries and professions – there has been no change to the law or the application of the tax in relation to GPs or medical centres."
9news.com.au has also contacted the NSW treasury department for comment.
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