GP corporate launches campaign blitz against payroll tax threats
A corporate has taken out full-page newspaper ads warning state MPs that payroll tax demands on GP practices will destroy access to bulk-billed care.
The Cornerstone Health–funded campaign in Queensland’s Courier Mail say that bulk-billing medical centres, which rely entirely on Medicare for funding, will effectively come to an end.
“This is because the Queensland Government will impose a 5% payroll tax on contractor GPs, who will have no option but to pass this cost on to patients.”
Unlike practices in NSW and Victoria, those in Queensland have secured an amnesty from payroll tax audits until July 2025.
But Cornerstone Health CEO Henry Bateman said the decision was just “kicking the political issue down the road”.
“I can tell you it would be significant enough for us that we could no longer afford to bulk-bill all the patients all the time,” he told AusDoc.
Asked whether the company could restructure so its GP contracts were not seen as employment-type agreements, Mr Bateman said: “We could spend money on lawyers, consultants and accountants, then end up with the same result.
“Rather than restructure, let’s just deal with the real issue, which is a poor policy.”
He said the NSW and Victorian state governments had offered meetings to discuss the impact of payroll tax with Cornerstone Health, which had nine practices across the two states.
But in Queensland, where the company has five bulk-billing practices, the government had stonewalled, he said.
Putting “hundreds of thousands” of dollars into the advertising campaign was an attempt to cut through to state MPs.
“It is possible the argument has not been prosecuted clearly and successfully, and in the absence of that, Cornerstone is going to take leadership on the issue,” he said.
The advertisements link to a petition against the payroll tax crackdown, which has 5400 signatures so far.
Mr Bateman said most patients were yet understand the significance of the payroll tax issue.
“I think the confusion is the question: ‘Are you paying no payroll tax?’
“Because we do. We pay a significant amount of payroll tax with respect to our employees.
“But we do not for our independent contractors, and that has been the legal position for a very long time.
“GPs speak to each patient; they come in and use our services to run their practice and their ABN number.
“They practise medicine the way they want to, and they are clinically independent. And that is the way the GPs want it to be.”
