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🗞️Victorian Government's '$10 million bandaid' won't save general practice care or help with cost-of-living

🗞️Victorian Government's '$10 million bandaid' won't save general practice care or help with cost-of-living

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Peak general practice groups say that while the $10 million provided by the Victorian Government to assist GPs is a welcome acknowledgement of the disastrous effects of the state's Patient Tax, it will not prevent the cost-of-living crisis or save general practice care. The $10 million Victorian Budget that was unveiled today will fund a grant programme that was co-designed to assist general practitioners. The Premier of Victoria has been repeatedly urged to step in regarding the state's GP payroll tax debacle by the Australian GP Alliance (AGPA), Primary Care Business Council (PCBC), and Royal Australian College of General Practitioners (RACGP).

Survey data from HotDoc has shown practices will have to raise fees by 30% to cover the extra tax, and 4% of patients will go to hospital rather than a GP if they have to pay more. This will blow out the State Budget and worsen the logjam in in Victoria’s hospitals. Just last week a patient died waiting for a bed when the emergency department was reportedly standing room only at Maroondah Hospital.

RACGP, PCBC and AGPA are calling for:

no retrospective collection of payroll tax liabilities, which will cause practice bankruptcies and closures
Victoria to follow Queensland and provide a new tax ruling, clarifying that patients' fees paid directly to a GP for their services won’t be subject to payroll tax
a compliance period to allow practices to adjust to the new ruling so they don’t have to pass the tax on

RACGP Victoria Chair Dr Anita Munoz said: “While any investment in general practice care is always welcome, the Victorian Government’s $10 million to support GPs will not save us from the Patient Tax – it’s like putting a bandaid on a patient who’s lost both their legs.

“This State Budget will worsen the cost-of-living crisis for Victorians and is a huge disappointment to GPs, practice teams and our patients. The Government knows practices can’t afford the state’s extra payroll tax, and neither can their patients.

“General practice helps people stay healthy – everyone needs a GP. Victoria’s Patient Tax will be devastating for our health system. When people can’t afford care, they get sicker, and we'll see more Victorians forced into the state’s overflowing hospitals, which will rapidly blow out the State Budget.”

“This was a golden chance for the Victorian Government to send a message to the community that they were doing all they can to address cost of living pressures – instead they’ve ensured going to the doctor will get more expensive, if you can find a local GP with the doors still open,” said PCBC President Dr Ged Foley.

“Victorians should be prepared for further crowding at hospitals and local GPs to be at breaking point.”

AGPA Deputy Chair Mukesh Haikerwal said: “Victoria has the highest government debt per household across Australia – amounting to over $10 million a day in interest alone – and the limited yield of the Patient Health Tax will damage our heath system and blowout the health and overall State Budget further.”

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Whilst the Brotherhood of St. Laurence acknowledges the 2024-2025 Victorian Budget has been shaped by difficult economic and fiscal conditions requiring tough State Government decisions, we are disappointed there was not more attention on system reforms needed to help those doing it toughest.

Meanwhile , The Victorian Women's Health Services Network (WHSN) welcomes this year’s focus on cost of living relief for families and the additional $269 million towards the safety of women and children, in addressing gender-based violence.

WHSN Chair and Women’s Health Loddon Mallee Chief Executive Officer Tricia Currie, said the network is pleased to see that in spite of the expected budget tightening measures, the Victorian Government has demonstrated its ongoing commitment to gender and health equality, and to addressing gender-based violence.

“Our network acknowledges the challenging nature of the State’s finances. Through this budget, the Allan Government has succeeded in recognising the value of investing in the equitable health and wellbeing of Victorians, which the WHSN has demonstrated will produce a return on equity.”

“This year’s focus on cost of living and investment in health, wellbeing and prevention will continue momentum towards a safer, more equitable Victoria,” Ms Currie said.

"The reduction of cost of living pressures, which we know disproportionately impacts women, is a welcome focus of the 2024/25 state budget.

“Because economic security is a social determinant of health, we are cautiously optimistic that measures within the budget to offer economic relief to families and strengthen women’s economic inclusion will contribute to increased access to health and wellbeing.”

Ms Currie said the network was supportive of the Gender Equality Budget Statement, particularly the move to embed gender responsive budgeting into legislation.

"As international best-practice, gender responsive budgeting acknowledges the importance of considering the suite of initiatives and investment within the budget through a gender lens,” Ms Currie said.

“This can be seen within the Gender Equality Budget Statement which acknowledges the crucial interaction between gender inequity and areas like housing, mental health, employment and opportunities to participate in public life.”

The Gender Equality Budget Statement also includes a particular focus on women’s pain and specific health needs, including sexual and reproductive health.

“The Allan Government’s focus on addressing the gender pain gap through an ongoing Inquiry supports the improvement of sexual and reproductive health, an area we would ideally like to see attracting greater investment in future budgets,” Ms Currie said.

“While we still have a long road to travel towards a gender equal Victoria, as has been keenly demonstrated by the devastating toll of gender-based violence this year, the State Government continues to show leadership in this space.”

“We know that effective prevention, early intervention and response to gender-based violence requires sustained, long-term investment and adequate resourcing.”

Ms Currie said the Victorian Government’s acknowledgement of the intersecting experiences of Victorian women within the budget was crucial to meeting women’s health needs.

“The focus on tailored support for women of intersecting identities, including transgender women, women with disabilities and women from migrant and refugee backgrounds within our healthcare system shows that the Government is striving to improve health equity,” Ms Currie said.

“While the Victorian Women’s Health Services Network is pleased with this budget’s focus and commitment to health and gender equity, it is crucial to acknowledge that we still have a long way to go in achieving optimal health, wellbeing and safety for all Victorians.”

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🗞️Victorian Government's '$10 million bandaid' won't save general practice care or help with cost-of-living

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