In general practice, GPs have always been treated as contractors. However, on 25 August 2023, the Chief Minister of the ACT announced that as from 1 September 2023, GP remittances were to be regarded as pays and would therefore be subject to payroll tax. Including GP remittances as pays unfortunately means that East Canberra General Practice will exceed the payroll tax threshold for the ACT and we will have to start paying payroll tax. General practice operates on small profit margins and unfortunately, we are unable to absorb this new tax. We have no choice but to pass on the cost of this new tax on general practice to our patients. So, as of 1st September 2023, we will have to add a $3.00 payroll tax levy on to the cost of consultations for all our privately billed patients.
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