The AMA wants National Cabinet to arrange a nationwide payroll tax exemption for GP clinics to end the financial threat looming over general practice.

For months, state revenue offices in NSW, Victoria and Queensland have been auditing GP practices over payroll tax, issuing backdated debt notices to practices deemed to be employing GPs rather than treating them as contractors.

Some practices say they have been invoiced millions of dollars.

Now AMA president Professor Steve Robson is calling on National Cabinet to co-ordinate state and territory legislation exempting GP clinics from payroll tax, pointing out that state governments already exempted some private hospitals.