The Canberra Liberals will introduce legislation in the ACT Legislative Assembly next week to amend the ACT Payroll Tax Act 2011 to exempt clinics from the tax on GPs engaged as contractors and also reverse any retrospective application of the tax.

Canberra Liberals Leader and Shadow Treasurer Elizabeth Lee said the removal of the tax dubbed the ‘sick tax’ by the RACGP will prevent a massive hike in the cost of visiting a GP for Canberrans.

“It is predicted this tax will increase the cost of seeing a GP in Canberra by up to $20 a consultation as well as heavily impact on levels of bulk billing and increase the likelihood of more clinic closures,” Ms Lee said.

“Canberrans already pay the highest out-of-pocket costs to see a GP in the country and we have the lowest bulk billing rates in the nation.

“At a time when Canberran’s are facing a cost-of-living crisis with living costs reaching their highest levels in 20 years, Andrew Barr and the ACT Labor-Greens government want to put even more pressure on Canberrans by imposing this tax.

“A Canberra Liberals led government will provide an exemption for this tax on GPs if Andrew Barr does not because families, students, seniors, and some of the most vulnerable Canberrans should not have to pay more for essential healthcare.

“We are also providing certainty to GPs and all Canberrans who visit a GP because Andrew Barr and his government have failed to do so,” Ms Lee concluded.

Shadow Health Minister Leanne Castley said ACT has the second lowest number of GPs per capita, while each year fewer graduates are choosing to specialise in General Practice.

“These factors already make it more difficult and expensive for Canberra consumers to access their local GP and this in turn is placing more pressure on ACT public hospital emergency departments,” Ms Castley said.

“The Chief Minister, Andrew Barr, is hiding behind a decision of the NSW Court of Appeal to argue that there has been no change to ACT law – and that he is therefore not responsible for imposing this ‘sick tax’.

“If Labor and the Greens don’t support the Canberra Liberals’ amendment to remove the ‘sick tax’ they will remove all doubt its imposition is intentional,” Ms Castley concluded.