Bulk-billing clinics pocket $2m tax rebate as NSW battles to keep hospitals running

Bulk-billing GPs have walked away with more than $2m in payroll tax rebates in just three months as part of one state government’s initiative to reduce the strain on emergency services.

The NSW government established an ongoing payroll tax rebate for clinics employing contractor GPs which meet bulk-billing thresholds in last year’s state budget.

Under the initiative, clinics which achieve 80 per cent bulk-billed appointments in metropolitan Sydney and 70 per cent in other areas of the state are eligible for the payroll tax rebate.

Between September 4 and December 31, 2024 – the first three months of the program – clinics claimed a rebate on more than $41m of GP wages, resulting in a $2.2m rebate.

Finance Minister Courtney Houssos said the $189 program was the first time a NSW government had “made a strategic investment to support bulk-billing rates”.

“By relieving cost pressures on GP clinics, they can keep bulk-billed appointments available and accessible to patients,” Ms Houssos said.

“This is an important step as we roll out the Bulk-Billing Support Initiative and shows the government is delivering important cost-of-living relief to families and households.

“It’s encouraging to see clinics begin to take up the Bulk-Billing Support Initiative.

“As we progress through the year we expect to see more clinics claiming the rebate and the benefits flowing to patients and their families.”

The program is designed to reduce strain on emergency departments statewide, with a one per cent drop in bulk-billing equating to about 3000 more presentations at hospitals.

Health Minister Ryan Park said the lack of access and availability of bulk-billing GPs was taking an enormous toll on the state’s hospitals.

“This initiative is critical to alleviating pressure on our emergency departments.”

Marginally more of the rebate was claimed by metropolitan clinics, at 55 per cent of the total rebate, while the remaining 45 per cent were regional clinics.

A further $104m in historical payroll tax liabilities, accrued under the previous Liberal-Nationals government, were also waived by the Minns government.

The government said industry bodies had warned that without tax forgiveness, some clinics would close and half would pass a $20 on to patients.