Courtney Houssos MP takes first step to save GP practices at risk of closure

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Minister for Finance Courtney Houssos today announced the NSW Government will move to pause payroll tax audits for GPs and their practices for 12 months to allow for ongoing consultation with the Royal Australian College of General Practitioners and Australian Medical Association (RACGP). 

This follows the release on 11 August 2023 of a practice note by Revenue NSW on payroll tax rules affecting GPs. The note was released after the conclusion of a series of court cases contested by the former Government on the matter.

“This matter is historic and dates back to before 2018. Its resolution has been hampered by multiple court hearings and the neglect of the previous Coalition Government. We understand this neglect has created great uncertainty in the GP community.

“This will take time but we are committed to doing this carefully and thoughtfully to achieve the best result we can.” Ms Houssos said.

There will also be a 12 month pause on tax penalties and interest accrued on outstanding payroll tax debts incurred before and at the commencement of the 12-month period.

The RACGP has welcomed the recent announcement by New South Wales Government.

“I thank the NSW Government for taking this important first step to stop any forced closures of GP clinics due to the new application of payroll tax – I know GPs and their patients across NSW will be doing the same.” Dr Nicole Higgins, President of RACGP said.

The change will be implemented through an amendment to the Revenue, Fines and Other Legislation Amendment Bill.

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