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Victorian Treasurer Tim Pallas has been criticised over a decision to waive payroll tax fees for struggling doctors amid concern the scheme is placing unnecessary pressure on the health industry.
Victoria's GP payroll tax recently came under fire following a new interpretation that classified doctors as employees, not contractors, resulting in higher fees for certain practices.
The treasurer this week faced backlash after a letter he wrote to peak medical bodies on the issue was made public.
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In the letter, Pallas promised to use his Parliamentary powers to waive fees for doctors facing the prospect of going under, despite initially publicly claiming the industry wasn't facing pressure.
"This Government has no interest in any GP clinic closing their doors," he wrote last week.
"I would be inclined to use my 'ex gratia' power to prevent that happening."
Victoria's opposition leader John Pesutto criticised the move.
"Basically, Tim Pallas is saying if our taxes under Jacinta Allan are sending you broke, then write to us and we'll let you off the hook," he said.
"This health tax is unfair and it's wrong."
Pallas today denied he was providing exceptions for GPs, telling reporters other industries had the same options available.
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It comes after opposition from healthy industry lobbyists in recent months, concerned about the large bills some practices had acquired due to the new interpretation.
"Practices are already closed, or have closed as a result of this activity," RACGP chair Anita Munoz said.
"Those businesses will never reopen."
Munoz told 9News the letter offered little reprieve for doctors who were struggling.
"It indicates that the message that practices are at threat of closure has been received, but I think a possible ex-gratia waiver is not enough to provide comfort," she said.
Ahead of the letter being made public, Pallas had denied the tax was placing pressure on general practices, stating there was "no evidence" of the tax turning GPs broke.
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The Victorian Government has now promised representatives of the medical industry regular consultation with the state revenue office and the tax commissioner, with quarterly meetings to begin in November.
But Pallas reiterated that the tax would not disappear anytime soon.
"It would not be fair to every other taxpayer if I were to make a special exception for GPs," he said.
"And I'll be clear: I won't be making an exception."
