Victorian Coalition Pledges to Remove Payroll Tax for GPs
13 Jul 2026
The Victorian Liberals and Nationals say they will exempt GPs from payroll tax if they form government after the state election.
Shadow Industrial Relations Minister Brad Rowswell said removing the tax would help lower the cost of visiting a GP and reduce pressure on hospital emergency departments.
He said higher healthcare costs are leading more Victorians to seek treatment in public hospitals instead of visiting their local GP, making the current system more expensive in the long run.
RACGP Victoria Co-Deputy Chair Dr Aadhil Aziz welcomed the announcement, saying many general practices are already struggling with rising business expenses, inflation, and operating costs.
He said most GP clinics operate as small businesses with very small profit margins, making it difficult to stay financially sustainable, recruit doctors, and keep healthcare affordable for patients.
The RACGP is now calling on all political parties contesting the Victorian election to make the same commitment. The college pointed to Queensland, where legislation was introduced last year to permanently exempt GPs from payroll tax after both major parties supported the change before the 2024 state election.
The RACGP has previously warned that payroll tax could place significant pressure on Victorian general practices. It cited a HotDoc report suggesting some clinics could be forced to close, while a newsGP survey found only a small number of practices believed they could absorb the additional costs.
Dr Aziz said abolishing payroll tax would help safeguard existing GP clinics, strengthen the long-term sustainability of general practice, and ensure patients continue to have access to primary healthcare.
He added that when patients cannot see a GP, they are more likely to attend already busy hospital emergency departments, increasing pressure on the public health system.
Victorian Health Minister Harriet Shing was contacted for comment.
Victorian Coalition Pledges to Remove Payroll Tax for GPs
Source: newsGP