[Australia] Dentists join payroll tax exemption fight

The Australian Dental Association has warned that some dental practices in Victoria will have to raise their fees while others could potentially close altogether unless the state carves out payroll tax exemptions for all medical clinics, WAtoday reports.

Practices with independent dentists working in them are concerned that they will receive backdated tax bills due to recent rulings from state revenue offices. 

Dentists reportedly say that the bills would be the biggest threat to their sector since the pandemic led to critical mask shortages.

They have written to new Victorian Premier Jacinta Allan to request a tax amnesty, similar to the one put in place for GPs in NSW.

In its October 3 letter to Ms Allan, the dental association reportedly said it had previously written to then-premier Daniel Andrews, Treasurer Tim Pallas and Health Minister Mary-Anne Thomas without receiving a meaningful response.

“Some practices will be forced to close, with financial hardship and distress foreseeable impacts,” the letter says.

“Ultimately, increased costs to patients and heightened demand for public services that are already stretched well beyond their limits should be expected. We have raised our concerns with your government already and now ask you to intervene and immediately reconsider the new ruling.

“Premier, work with us to find a solution that does not harm the healthcare system.”

Australian Dental Association president Dr Stephen Liew described the lack of engagement from the government so far was a “kick in the teeth”.

“We couldn’t work for six months due to lockdowns. We’re only just recovering,” he said. “What you don’t do is attack healthcare providers retrospectively – without warning, without consultation – and send them five-to-six-figure tax bills. At least sit down to work out a sustainable solution.”

Dr Liew is reportedly referring to an August ruling from the Victorian State Revenue Office that confirmed all medical practitioners working in health clinics would be subject to payroll tax for the first time, even if they are independent contractors.

Practices have long paid payroll tax for employees but not for those who lease rooms from the practice owner and work under independent arrangements.

Prior reporting from The Age revealed that some doctors have threatened to name and shame the Labor government on their medical bills as part of the tax dispute, as well as displaying anti-payroll-tax posters and petitions in their waiting rooms.

The dental association is not ruling out a similar campaign and is calling on members to send letters to MPs demanding they back a tax amnesty.

“We are going to show people why their fees are going up,” Dr Liew said.

The Victorian government has reportedly insisted for weeks that there has been no change to tax laws or the application of those laws.

“Payroll tax is assessed in the same way across industries and professions,” a spokesman for Treasurer Tim Pallas said when asked for comment.

However, Dr Liew said the government was hiding behind semantics.

“The change has been an interpretation of the rules based on lawsuits, and the reaction has been callous. The only way to survive without laying off staff or closing doors is to pass that tax on.”

Victorian GPs affected by the changes say they will need to increase fees by $15 to $20 per consultation. Dentists say they can’t put a flat figure on future fee rises because they do not provide flat fees and consultation times.

According to Dr Liew, dentists have, on average, increased their fees by only 2.5 per cent over the past five years, despite inflation rising by 14.5 per cent.

“In real-world terms, dentists have already taken into account a 12 per cent reduction in fees for the good of Australia.”

Consumer group Choice found that the average cost of a dental check-up, including a clean and fluoride treatment, was about $219 in 2022.

Source: WAtoday

(Links and quotes via original reporting)

The Australian Dental Association has warned that some dental practices in Victoria will have to raise their fees while others could potentially close altogether unless the state carves out payroll tax exemptions for all medical clinics, WAtoday reports.

Practices with independent dentists working in them are concerned that they will receive backdated tax bills due to recent rulings from state revenue offices. 

Dentists reportedly say that the bills would be the biggest threat to their sector since the pandemic led to critical mask shortages.

They have written to new Victorian Premier Jacinta Allan to request a tax amnesty, similar to the one put in place for GPs in NSW.

In its October 3 letter to Ms Allan, the dental association reportedly said it had previously written to then-premier Daniel Andrews, Treasurer Tim Pallas and Health Minister Mary-Anne Thomas without receiving a meaningful response.

“Some practices will be forced to close, with financial hardship and distress foreseeable impacts,” the letter says.

“Ultimately, increased costs to patients and heightened demand for public services that are already stretched well beyond their limits should be expected. We have raised our concerns with your government already and now ask you to intervene and immediately reconsider the new ruling.

“Premier, work with us to find a solution that does not harm the healthcare system.”

Australian Dental Association president Dr Stephen Liew described the lack of engagement from the government so far was a “kick in the teeth”.

“We couldn’t work for six months due to lockdowns. We’re only just recovering,” he said. “What you don’t do is attack healthcare providers retrospectively – without warning, without consultation – and send them five-to-six-figure tax bills. At least sit down to work out a sustainable solution.”

Dr Liew is reportedly referring to an August ruling from the Victorian State Revenue Office that confirmed all medical practitioners working in health clinics would be subject to payroll tax for the first time, even if they are independent contractors.

Practices have long paid payroll tax for employees but not for those who lease rooms from the practice owner and work under independent arrangements.

Prior reporting from The Age revealed that some doctors have threatened to name and shame the Labor government on their medical bills as part of the tax dispute, as well as displaying anti-payroll-tax posters and petitions in their waiting rooms.

The dental association is not ruling out a similar campaign and is calling on members to send letters to MPs demanding they back a tax amnesty.

“We are going to show people why their fees are going up,” Dr Liew said.

The Victorian government has reportedly insisted for weeks that there has been no change to tax laws or the application of those laws.

“Payroll tax is assessed in the same way across industries and professions,” a spokesman for Treasurer Tim Pallas said when asked for comment.

However, Dr Liew said the government was hiding behind semantics.

“The change has been an interpretation of the rules based on lawsuits, and the reaction has been callous. The only way to survive without laying off staff or closing doors is to pass that tax on.”

Victorian GPs affected by the changes say they will need to increase fees by $15 to $20 per consultation. Dentists say they can’t put a flat figure on future fee rises because they do not provide flat fees and consultation times.

According to Dr Liew, dentists have, on average, increased their fees by only 2.5 per cent over the past five years, despite inflation rising by 14.5 per cent.

“In real-world terms, dentists have already taken into account a 12 per cent reduction in fees for the good of Australia.”

Consumer group Choice found that the average cost of a dental check-up, including a clean and fluoride treatment, was about $219 in 2022.

Source: WAtoday

(Links and quotes via original reporting)