Doctors warn the government's $3.5 billion investment to make visiting GPs more affordable is being pocketed by states that changed their payroll tax rules, leaving little room to lift bulk billing rates.
Doctors say early signs suggest federal funding to improve bulk billing is being eaten away by state tax changes
But at almost the same time, a number of state governments determined a new interpretation of payroll tax laws that meant GPs would now be counted as employees rather than contractors for tax purposes, increasing the tax take by states from medical practices. "What we're hearing is, 'I can't afford to bulk bill people who really need it because I have got to pay this state tax.'"
But preliminary data released by the Australian Institute of Health and Welfare suggests any improvements to the bulk-billing rate have so far failed to translate into reduced overall costs for patients. "This data shows that any benefit to affordability has just been eaten up by higher costs that have been paid by people that are not bulk billed," Senator Ruston said.Butler and Ruston share concern states are undermining federal efforts
Mark Butler has expressed fears billions spent by the federal government to improve bulk billing will be lost to state taxes.His opposition counterpart, Senator Ruston, said the federal government must stand up to the states, or else it will have only paid to help their bottom lines."Any benefits whatsoever that could have been achieved by increased revenues for GP practices was immediately taken away by the states and territories through this payroll tax.
Dr Higgins said as a last resort, Mr Butler could use a review of National Health Reform Agreements, which is used to set federal health funding for the states, as a cudgel for states who refused to yield. We know our GPs are under pressure after a decade of neglect by successive former federal Coalition governments – that is why we have stepped into primary care delivering $32 million to support graduate GPs, establishing 29 Priority Primary Care Centres and rolling out the community pharmacy pilot," the spokesperson said.
"The level of the Medicare rebate and incentives to bulk bill are the essential elements to improve GP access and affordability," the spokesperson said.
GP Doctors Primary Healthcare Payroll Tax Bulk Billing Medicare Cost Of Living
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