NSW GPs, tax specialists want healthcare clinics excluded from payroll tax

Dr Debra King says payroll tax and the Medicare rebate freeze will cripple primary healthcare. (ABC Mid North Coast: Alexandra Jones)

GPs say medical centres in NSW could be forced to shut down or charge patients higher fees if a court decision finds clinics are liable for payroll tax.

Prior to a recent NSW tribunal ruling, medical clinics typically collected patient fees, withheld a certain percentage to cover rent or other expenses, and passed on the rest to "tenanted" General Practitioners (GPs).