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House of Assembly - Fifty-Fifth Parliament, First Session (55-1)
2023-11-01 Daily Xml
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General Practitioner Payroll Tax

Mrs HURN (Schubert) (14:36): My question is to the Minister for Health and Wellbeing. Will the government extend the GP payroll tax amnesty to July 2026 as requested by the Royal Australian College of GPs in South Australia?

The Hon. S.C. MULLIGHAN (Lee—Treasurer) (14:36): In my discussion with the royal college, they asked that we extend the period of time to register for the amnesty to November. We immediately said yes. In fact, not just 1 November but we extended it to the end of this month to make sure that there were a number of months in addition to what had previously been sought by the royal college and what had previously been agreed to by the government.

Each time I have sat down with Dr Goodson, we have had a productive discussion where we have understood the practical impact on GPs and what it would mean for them to understand their obligations and how much time it may take for them to get to the point of registering with Revenue SA so that they can work through this. While it might appear clear to us, most of us, if not all of us, not being familiar with having operated a GP clinic, there are many different iterations of how these business models are structured and it's very difficult for Revenue SA to provide broadbrush advice that will apply to all the clinics because that's not how they have structured their operations, hence why we encourage them to register.

We arrived at the more than 12-month period of time when they didn't have to pay payroll tax because we thought a full financial year of not having to pay payroll tax would give people a full opportunity and understanding of how the application of payroll tax would impact their business. What has been clear to me in some of the correspondence I have received from those opposite, from some of our own members and from some of the representations I have received from general practitioners, is that from the outset it seemed that some of them thought that payroll tax was payable on turnover of that clinic or that payroll tax was payable on all the wages of the clinic. Of course, those two things are not correct. Payroll tax is only payable on eligible wages. It's not even payable on all those wages; it's only payable on those wages above a tax-free threshold.

Once we have had the opportunity of working with GPs to understand how their business is structured, what their wage bill is, how the payroll tax threshold applies to them—some of them, of course, particularly in the smaller practices still won't be liable for payroll tax. Some of those in larger practices are likely to be liable for payroll tax.

Those opposite called for a one-year tax-free period, then a two-year tax-free period, and now they are calling for a three-year tax-free period—and that's on top of, at one point, also calling for the tax not to be levied on them at all.

Mrs Hurn interjecting:

The SPEAKER: Order, member for Schubert!

The Hon. S.C. MULLIGHAN: I guess the question is to be posed to those opposite: how long is a reasonable period of time for a government to operate a tax base where one group of people continue to meet their tax obligations and another group of people don't?

The Hon. V.A. TARZIA: Point of order, sir: you have given the opportunity for the Treasurer to warm up, but he is now actually debating the matter to which the subject refers; standing order 98.

The SPEAKER: I have the question and the point of order. There is some merit in the matter raised. I will continue to listen carefully, and I bring the Treasurer to the question. I notice his time is close to expiring.

The Hon. S.C. MULLIGHAN: Thank you, Mr Speaker. As I said, we have been approaching this from a fair and pragmatic basis, making—

Mr Telfer interjecting:

The SPEAKER: Order, member for Flinders!

The Hon. S.C. MULLIGHAN: The member for Flinders interjects. Of course, a month ago the request was one year, then—

Mr Whetstone interjecting:

The SPEAKER: Member for Chaffey!

The Hon. S.C. MULLIGHAN: —in recent weeks it was for two years.

Mrs Hurn interjecting:

The SPEAKER: Member for Schubert!

The Hon. S.C. MULLIGHAN: Today it is for three years. Presumably next sitting week—

Members interjecting:

The SPEAKER: Order!

The Hon. S.C. MULLIGHAN: —they will be asking for four years, and maybe in the last sitting week they will be after five years.

Mrs Hurn interjecting:

The SPEAKER: The member for Schubert is warned.

The Hon. S.C. MULLIGHAN: Such is the ever-changing policy approach of those people who want to occupy the Treasury benches—God help us if that were ever the case.

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