Liberals and Nationals secure scrapping of Labor’s insidious Health Tax

The Victorian Liberals and Nationals have ensured visits to the GP will remain affordable and saved bulk-billing as the Allan Labor Government announces a long-overdue scrapping of its insidious Health Tax.

In a significant backflip following months of campaigning from the Victorian Liberals and Nationals, Treasurer Tim Pallas today announced Labor will exempt contractor GPs and employee GPs who provide bulk-billed consultations from payroll tax.

Previously, Labor’s Health Tax applied payroll tax for the first time on contractor GPs in health clinics across the state, adding almost 30 per cent to the cost of visiting a doctor and threatening the financial viability of many clinics.

In October 2023, the Victorian Liberals and Nationals introduced a Private Members Bill in the Victorian Parliament to amend thePayroll Tax Act 2007 to stop the Health Tax.

Leader of the Opposition, John Pesutto, said: “For months Labor ignored healthcare professionals about the dire impact on patients their insidious Health Tax was having.

“The Victorian Liberals and Nationals always stood against Labor’s Health Tax and today’s long-overdue backflip is a win for Victorians and for common sense.”

Shadow Minister for Health, Georgie Crozier, said: “Labor’s unfair Health Tax was hurting Victorians at a time when they are doing it so tough through a cost-of-living crisis.

“The scrapping of this insidious tax is the right outcome for Victorian patients and GPs.”