RACGP Calls for Full Payroll Tax Exemption Ahead of Victorian Election
17 Jul 2026
With the Victorian Election approaching, the RACGP has released its election priorities, calling for stronger support for general practice as clinics face rising operating costs, increasing demand and more patients living with chronic health conditions.
Victorian GP Dr Martin Sia, who has built a network of nine general practices over the past three decades, said payroll tax is creating financial pressure for practice owners and could make it harder for future GPs to establish their own clinics.
He warned that increasing business costs may eventually flow through to patients, making healthcare less affordable and placing extra strain on general practice.
RACGP Victoria Deputy Co-Chair Dr Aadhil Aziz said many general practices operate on narrow margins, and payroll tax has become a significant challenge to their long-term sustainability. He said supporting general practice is essential to maintaining timely access to primary healthcare across Victoria.
Alongside payroll tax reform, the RACGP is calling on the next Victorian Government to:
- Allow GPs to prescribe oral isotretinoin for severe acne.
- Fund medicines for children in foster and kinship care.
- Expand incentives and mentoring for GPs providing medication-assisted treatment for opioid dependence.
- Reinstate the Chief General Practice Adviser role to strengthen GP input into health policy and decision-making.
Since 1 July 2026, Victoria has exempted payroll tax on GP wages linked to bulk-billed consultations. However, the RACGP says a full exemption is needed to better support general practices.
Earlier this month, the Victorian Coalition also pledged to introduce a full payroll tax exemption for GPs if elected at the 28 November state election.
RACGP Calls for Full Payroll Tax Exemption Ahead of Victorian Election
Source: newsGP