Facility Charge
Changes to consultation fees are taking effect.
From 1 November 2024, a practice Facility Charge
will apply to all privately billed medical consultations.
How much will the facility charge cost?
$15 per consultation
Why is the Facility Charge being applied?
Several factors have resulted in the need to implement this charge, however the primary catalyst is the administration of the South Australian Labor Government’s newly defined payroll tax liability.
The Medical Practice is mostly financed by the fees you pay to see your paediatrician. Unfortunately, the federal government has failed to fully index Medicare for the last 12 years running, and the Practice can no longer sustain operations under the current model. The application of a practice facility charge contributes towards the Practice meeting these increased operational costs with the least possible amount of financial burden to patients while ensuring ongoing provision of essential paediatric care.
About Payroll Tax
This year the South Australian Labor Government and Revenue SA made the decision to deem the practitioner income of independent GP’s and medical specialists as applicable in their assessment of payroll tax. Independent consulting paediatricians operating their private practice at Adelaide Paediatrics practice with complete autonomy, and the assessment that they are deemed ‘employees’ by state revenue bodies is, in our view, a flawed and inappropriate classification of the nature of the relationship between a services provision entity such as Adelaide Paediatrics and associated sole traders.
Unfortunately, the resulting collateral damage will be borne by all South Australians by way of additional costs incurred to see a medical practitioner, exacerbating existing health inequalities with a concerning likelihood for increased presentations to already overstretched Emergency Departments, leading to further ramping and ongoing health care crises for the South Australian Government. The irony is that this will undoubtably mean far greater Federal and State government funding will ultimately be required to support the already overrun public health system as a result.
Support Primary Health Care
Having a healthcare system centred around well-funded Primary Health Care is the most efficient and cost-effective way of delivering healthcare to the South Australian community. This practice will continue to contest the state Labor government’s misinterpretation of payroll tax liability.
We encourage families to voice objections to the misinterpretation of payroll tax with your local Member of Parliament. We want to see this inappropriate application of payroll tax overturned as supported by the South Australian Liberal Party, so that practice facility charges can be removed.
Please join us in making a stand for Primary Health Care so that we can continue to deliver much needed paediatric healthcare to South Australian children and families.