[Australia] Treasurer criticised over decision to waive payroll tax fees for struggling GPs

In Australia, Victoria’s Treasurer Tim Pallas has received criticism over a decision to waive payroll tax fees for struggling doctors in the wake of concern that the scheme is putting the health industry under unnecessary pressure, 9News reports.

Victoria's GP payroll tax recently came under fire after a new interpretation classifying doctors as employees, not contractors, led to higher fees for certain practices.

The treasurer reportedly faced backlash this week after a letter he wrote about the issue to peak medical bodies became public.

In the letter, Mr Pallas reportedly promised to use his Parliamentary powers to waive fees for doctors facing the prospect of going under, despite his initial public claims that the industry wasn't facing pressure.

"This Government has no interest in any GP clinic closing their doors," he wrote last week.

"I would be inclined to use my 'ex gratia' power to prevent that happening."

John Pesutto - Victoria's opposition leader - criticised the move.

"Basically, Tim Pallas is saying if our taxes under Jacinta Allan are sending you broke, then write to us and we'll let you off the hook," he said.

"This health tax is unfair and it's wrong."

On October 31, Mr Pallas denied that he was providing exceptions for GPs. He told reporters that other industries had the same options available.

This latest development comes on the heels of opposition from health industry lobbyists in recent months, concerned about the large bills some practices had accumulated due to the new interpretation.

Anita Munoz -  RACGP chair - said, "Practices are already closed, or have closed as a result of this activity.

"Those businesses will never reopen."

Ms Munoz reportedly told 9News that the letter offered little reprieve for struggling doctors.

"It indicates that the message that practices are at threat of closure has been received, but I think a possible ex-gratia waiver is not enough to provide comfort," she said.

Before the letter was made public, Mr Pallas had denied the tax was placing pressure on general practices, stating there was "no evidence" of the tax making GPs ‘broke’.

The Victorian Government has now promised representatives of the medical industry that they will get regular consultations with the state revenue office and the tax commissioner. Quarterly meetings are to begin in November.

However, Mr Pallas reiterated that the tax would not disappear anytime soon.

"It would not be fair to every other taxpayer if I were to make a special exception for GPs," he said.

"And I'll be clear: I won't be making an exception."

Source: 9News

(Quotes via original reporting)

In Australia, Victoria’s Treasurer Tim Pallas has received criticism over a decision to waive payroll tax fees for struggling doctors in the wake of concern that the scheme is putting the health industry under unnecessary pressure, 9News reports.

Victoria's GP payroll tax recently came under fire after a new interpretation classifying doctors as employees, not contractors, led to higher fees for certain practices.

The treasurer reportedly faced backlash this week after a letter he wrote about the issue to peak medical bodies became public.

In the letter, Mr Pallas reportedly promised to use his Parliamentary powers to waive fees for doctors facing the prospect of going under, despite his initial public claims that the industry wasn't facing pressure.

"This Government has no interest in any GP clinic closing their doors," he wrote last week.

"I would be inclined to use my 'ex gratia' power to prevent that happening."

John Pesutto - Victoria's opposition leader - criticised the move.

"Basically, Tim Pallas is saying if our taxes under Jacinta Allan are sending you broke, then write to us and we'll let you off the hook," he said.

"This health tax is unfair and it's wrong."

On October 31, Mr Pallas denied that he was providing exceptions for GPs. He told reporters that other industries had the same options available.

This latest development comes on the heels of opposition from health industry lobbyists in recent months, concerned about the large bills some practices had accumulated due to the new interpretation.

Anita Munoz -  RACGP chair - said, "Practices are already closed, or have closed as a result of this activity.

"Those businesses will never reopen."

Ms Munoz reportedly told 9News that the letter offered little reprieve for struggling doctors.

"It indicates that the message that practices are at threat of closure has been received, but I think a possible ex-gratia waiver is not enough to provide comfort," she said.

Before the letter was made public, Mr Pallas had denied the tax was placing pressure on general practices, stating there was "no evidence" of the tax making GPs ‘broke’.

The Victorian Government has now promised representatives of the medical industry that they will get regular consultations with the state revenue office and the tax commissioner. Quarterly meetings are to begin in November.

However, Mr Pallas reiterated that the tax would not disappear anytime soon.

"It would not be fair to every other taxpayer if I were to make a special exception for GPs," he said.

"And I'll be clear: I won't be making an exception."

Source: 9News

(Quotes via original reporting)