ACT ditches controversial GP payroll tax rule

The ACT took the approach of Victoria and SA, starting last week.
ACT Chief Minister Andrew Barr.

The first jurisdiction to link payroll tax and bulk-billing — by exempting clinics that bulk-billed 65% of services — has flipped its approach.

As courts decided GP income could count as wages in 2023, the ACT Government announced a two-year tax amnesty for practices that met its bulk-billing target and signed up to MyMedicare.

Chief Minister Andrew Barr then launched a colourful attack on GPs and their representative groups, saying they lacked “ambition” on bulk-billing and misunderstood the tax-free threshold.

But in the 2025 ACT budget last month, he changed tack, at least with how the amnesty worked.