RACGP steps up push to end payroll tax on Victorian GPs
13 Nov 2026
The Royal Australian College of General Practitioners (RACGP) is increasing pressure on Victorian political parties to remove payroll tax on independent GPs, warning that the tax could affect healthcare access and practice sustainability.
The college has launched a new campaign featuring billboards in Bendigo and Box Hill, along with planned letterbox drops in Niddrie and Ballarat.
The campaign comes ahead of the Victorian State Election, with the RACGP urging political parties to commit to ending payroll tax on independent general practitioners.
A survey of 226 Victorian GPs highlights the financial pressure facing practices. The findings show:
- 39% of practices expect to reduce bulk billing or increase patient fees over the next 12 months if the tax remains unchanged.
- 25% have already reduced bulk billing or increased fees.
- 29% are considering moving or investing outside Victoria because of the tax.
- 62% say their financial position has worsened over the past two years, despite increased Medicare investment.
- 53% are extremely concerned about the long-term sustainability of general practice in Victoria.
The survey also found that 9% of practices have delayed hiring non-GP staff, while 11% have reduced opening hours or after-hours services. Another 10% have postponed investment in equipment, facilities or technology.
RACGP Victoria Chair Dr Anita Muñoz said the issue needs urgent attention, particularly for communities outside Melbourne.
She warned that practices and patients cannot afford to wait another year for a solution, noting that many clinics have already been forced to make changes to manage rising costs.
Political parties have different positions on the issue. During a recent RACGP and AMA Victoria health debate, the Labor Party ruled out a full payroll tax exemption for general practice, confirming it had no policy to abolish the tax for GPs.
The Coalition, One Nation and the Greens reaffirmed their support for exempting independent contractor GPs from payroll tax, bringing Victoria in line with other states.
Opposition Leader Jess Wilson also said she was prepared to recall Parliament to introduce the change before the end of the year.
Dr Muñoz welcomed the commitment and encouraged other political parties to support similar action, saying practices need certainty before planning their budgets for 2027.
In Bendigo, GP Dr Dan Harbison said his clinic, The GP Clinic Bendigo, wants to grow from four GPs and make room for several more doctors.
However, he said payroll tax makes it harder for Victorian practices to attract doctors when compared with states such as Tasmania and Queensland, where independent contractor GPs are exempt.
Dr Harbison said the survey results reflected concerns he was hearing from the local community, where patients and practices were increasingly worried about the future of GP services.
He also highlighted the financial challenges of maintaining bulk billing while managing payroll tax and Medicare rebates that have not kept pace with inflation.
According to Dr Harbison, some practices have already had to consider moving from bulk billing to mixed billing or private billing to remain financially sustainable.
He said payroll tax can significantly reduce the already limited profit margins of general practices, leaving less money available to invest in staff, facilities and patient services.
The RACGP's campaign is calling for action to protect general practice services and maintain patient access across Victoria.
RACGP steps up push to end payroll tax on Victorian GPs
Source: RACGP (newsGP) – RACGP campaign against Victorian GP payroll tax. Read related RACGP report