GP Bulk Billing

The Hon. J.S. LEE (14:50): 

I seek leave to make a brief explanation before asking a question of the Attorney-General, representing the Minister for Health, about GP bulk-billing.

The Hon. J.S. LEE: 

The Arkaba Medical Centre announced recently that it would no longer be offering bulk-billed GP appointments for children under 16. Dr Chris Moy explained to ABC Radio Adelaide on 13 February that the increasing overheads and cost pressures facing the clinic have made bulk-billed appointments unviable. While the federal Labor government increased the bulk-billing incentive for children, pensioners and concession cardholders last year in November 2024, the Arkaba Medical Centre's announcement in February shows clearly that the cost pressures are still sky-high for GPs.

While the state government has claimed that payroll tax exemptions for wages related to bulk-billed appointments will encourage an increase in bulk-billing rates across the state, this is clearly not the case for the Arkaba Medical Centre. My questions to the Attorney-General are:

1. Can the Attorney-General explain whether the government will address the issue of GP payroll tax and the concerns that adding an additional cost burden on GP clinics that are already running on razor-thin margins will have a devastating impact on our community?

2. Is the government concerned that more GP clinics may follow suit and stop bulk-billing children under 16, leading to worse health outcomes for young South Australians?

3. What measures will the government introduce to address the problem?

 

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State) (14:51): 

I thank the honourable member for her question. I might refer it to the Treasurer in relation to the payroll tax issue. I know the Treasurer has made some announcements about what the government is doing in relation to GP clinics that do bulk-bill—and payroll tax—and I will happily bring back the details exactly. I just note that there is a grave risk to bulk-billing in this country and with a federal election coming up we know very well what the federal Leader of the Opposition's views are about bulk-billing and what is likely to happen should there be a Liberal federal government.

 

13th May 2025

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector, Special Minister of State): 

The Treasurer has advised:

There is no general practitioner (GP) payroll tax. Payroll tax is collected on the taxable wages of all businesses liable for payroll tax in South Australia.

As part of the 2024-25 budget, the government announced that from 2024-25, medical practices will be eligible for an exemption on the wages of GPs based on the proportion of bulk-billed services relative to total services provided by GPs. The measure is intended to provide protection for current bulk-billed patients and an additional incentive for GPs to bulk-bill patients.

Commonwealth data indicates that the average GP bulk-billing rate in South Australia is currently around 75 per cent. The federal Labor government has recently announced an initiative to extend bulk-billing incentives from November 2025, expanding the eligibility for incentives to all Australians and introducing a new bulk-billing practice incentive program. It has been stated that these measures are expected to increase bulk-billing rates to around 90 per cent.