Tamworth Barton Lane Practice GP Daniel Rankmore and doctor Ian Kamerman wary of payroll tax in lead up to election

Health is at the top of the priority list for politicians, health staff and residents in the lead up to the state election in March.

The topic was discussed by leaders at the first federal cabinet meeting of the year on Friday, February 3.

Recommendations from a Medicare taskforce on measures to improve healthcare affordability and accessibility, support people with chronic health conditions and take pressure off hospitals were considered.

But the most pressing issue according to Tamworth doctor Ian Kamerman, and Barton Lane Practice GP Daniel Rankmore, is payroll tax.

"It's going to destroy general practice as we know it in NSW if nothing's done," Dr Kamerman said.

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Payroll tax is applied to employees and their wages. Companies of certain sizes have to pay, whole hospitals and non-profits are exempt. GPs have never paid payroll tax.

Most general practices are set up under contractor or tenancy models, where doctors provide services to patients.

The State Revenue Office has been challenging in court cases across the country that doctors aren't contractors, but employees, and therefore should pay payroll tax.

The definition of contractor could become more encompassing to include contractor doctors working in group practices.

Dr Kamerman said it's "bizarre" that at the same time politicians state their desire to put more money into general practice, "they're quite happy to impose a tax on general practice".

If it's applied it will make up five per cent of revenue, which would filter down to an increase in 10 to 15 per cent in patient fees, Dr Rankmore said.

"The state government thinks it's a bit of a cash grab, easy money, but really it'll result in significantly higher patient fees and then decrease access to primary care," he said.

"Instead of actually bolstering general practice, they're finding all these other ways to get around it and applying an extra tax to general practice, which makes no sense.

"The state government should view private general practice as a partnership in healthcare delivery, they should view us as a way of efficiently delivering health care and work with us, not increase our taxation at the end of a pandemic."

The Australian Medical Association (AMA) NSW has launched a state-wide campaign against payroll tax.

An AMA NSW survey found more than a third of 250 respondents would be forced to close their practice if liable for payroll tax.

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