Liberals and Nationals to abolish Labor’s regressive Health Tax

Liberal Party Victoria

Today, the Victorian Liberals and Nationals have announced a future Pesutto Government will make it cheaper to go to the GP and protect bulk billing by abolishing Labor’s regressive Health Tax.

Under the Allan Labor Government’s Health Tax, payroll tax calculations now include doctors and other health professionals who lease rooms from medical practices, rather than only direct employees of the practices themselves.

Earlier this year, Federal Labor Health Minister Mark Butler urged the Allan Government to reconsider its Health Tax, warning that investments in Medicare “will be lost to increased payroll tax obligations by general practices”.

Health industry experts have warned this will put many practices out of business, end bulk billing, increasethe cost of seeing a doctor by almost 30 per cent – costing around $100 per visit – and drive an additional two million patients a year through Victoria’s already overwhelmed emergency departments.

Furthermore, the Liberals and Nationals will seek to immediately implement this reform by introducing a Private Members Bill to the Victorian Parliament. If the Bill is not supported, a future Pesutto Government will abolish the tax upon coming to office.

Leader of the Opposition, John Pesutto, said: “Labor’s Health Tax is the result of a decade of financial mismanagement in Victoria under Labor Governments, with record debt, record taxes, and cruel cuts to services.

“A Government I lead will make it cheaper to go to the GP and protect bulk billing by scrapping Labor’s Health Tax.”

Shadow Minister for Health, Georgie Crozier, said: “This is a regressive tax that will close healthcare clinics and hurt patients who can least afford it.

“It’s time that Premier Jacinta Allan listened to GPs, health experts and her federal and interstate Labor colleagues and scrapped this insidious and unfair Health Tax.”

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