Tuesday, 21 March 2023

Payroll tax

Emma KEALY (Lowan) (14:23): My question is to the Treasurer. How many GP clinics will close as a result of the Treasurer’s decision to impose and backdate payroll tax on Victorian GPs?

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:23): I thank the member for her question. Of course primary care is the responsibility of the Commonwealth government. As a government, can I inform the member –

Members interjecting.

The SPEAKER: Order! Order! I cannot hear the Treasurer’s response.

Tim PALLAS: I can barely hear myself. The noise, the pitch, is so high, Speaker. But can I advise the member that I have met with GPs –

Members interjecting.

The SPEAKER: Member for South-West Coast!

Tim PALLAS: I have had the opportunity to talk about their concerns regarding problems that seem to have originally emanated out of Queensland with regard to some concerns about a change to the way in which GP practices were being taxed for payroll. I had the opportunity to confirm then, and I will confirm now, that we have not changed in any material way the procedure by which the State Revenue Office seeks to raise payroll tax from GPs. In fact I went further than that. I took the opportunity to indicate to the representatives of GPs that the SRO would sit down and work with them and issue a practice note to make it clear to GPs that there was no intention to change the tax liability of GPs, because as a government we recognise and we regard the hard work that GPs do.

Of course this government has spent a lot of time and effort making sure that GPs are supported. As I say, primary care is not the responsibility of state governments. Yet the Andrews Labor government has invested $43 million in 25 primary care clinics, and those clinics will provide free care for people with conditions that require urgent attention, taking a lot of the load off our emergency response. So as a government we take their concerns seriously. But can I assure the member, as I have assured the representatives of the GPs who came in – many of whom told of some quite substantial problems around being able to find staff and being able to effectively run their practices – we are a government that has been prepared to make a demonstrable effort in an area that is not our responsibility, a government that has wanted to lend a hand, has made a very profound impact and continues –

John Pesutto: But they’re still paying payroll tax, right?

Tim PALLAS: I hear from the Leader of the Opposition that we are still raising payroll tax. Yes, but we are not in any way changing the liability, and importantly, everybody has to pay a contribution towards the support that this government put in place to ensure that this state was able to deal with the travails of the pandemic – after all, some $14 billion worth of support to business.

Emma KEALY (Lowan) (14:27): Can you guarantee that GPs will not pay more in payroll tax?

Tim PALLAS (Werribee – Treasurer, Minister for Industrial Relations, Minister for Trade and Investment) (14:27): In response to the member’s question I can simply say that the payroll tax regime has not changed and GPs will pay payroll tax consistent with that regime, whether or not that increase will be as a consequence, effectively, of the size of their payroll. If the question goes to what the government’s plans are with regard to the budget, well, you will have to wait for the budget.