Effective 1 July 2024, a $5.50 ‘Practice Administration Levy’ will be applied to all privately billed consultations.
Why is the Practice Administration Levy being applied?
A number of factors have resulted in the application of this levy. These include rising operational costs such as rent, staff wages, superannuation guarantee charge increases, I.T., insurance, rates, electricity and administration of payroll tax liability. The practice is mostly financed by the fees you pay to see your doctor. Unfortunately, the Federal government has failed to fully index Medicare for the last 12 years and the practice can no longer sustain operations under this model. The application of a practice administration levy ensures that the practice meets these increased operational costs with the least possible amount of financial burden to patients.
About Pay-roll Tax
This year the South Australian Government and Revenue SA made a decision to include non bulk-billed practitioner billings in their assessment of payroll tax. Doctors working at Pro Health Care practice with a great deal of autonomy and the assessment that they are deemed employees by state revenue bodies is, in our view an incorrect and inappropriate classification of the relationship a practice has with practitioners. The irony is that the additional costs required to see a medical practitioner will exacerbate existing health inequalities, with a concerning likelihood for increased presentations to Emergency Departments that can only lead to further ramping and health care crises. This will undeniably result in far greater Federal and State government funding being needed for public health systems in the long run.
Support Primary Health Care
Having a health care system centred around well funded General Practice and Primary Health Care is the most efficient and cost-effective way of delivering health care to the community. This practice will continue to contest the State government’s misinterpretation of payroll tax liability and will continue to call it what it is – a tax on your health care. This practice encourages all patients to object to the mis-interpretation of payroll tax with your local Member of Parliament. Please make a stand for General Practice and Primary Health Care so that we can continue to deliver an affordable service to patients.