Newcastle has been included in a lower threshold of eligibility for a bulk-billing scheme aimed at improving the cost to visit the GP.
The NSW budget announced a $189 million initiative that will include a new payroll tax rebate for contractor GPs at clinics that meet bulk-billing thresholds.
Past unpaid payroll tax liability will also be waived for contractor GP wages to September 4, 2024.
The initiative is aimed at reducing financial pressures on GP practices to stop them passing on additional costs to patients and ease strain on emergency departments.
The rebate will be provided to clinics with bulk-billing rates above 70 per cent in Newcastle, the Hunter and rest of the state outside Sydney.
Sydney clinics must have rates above 80 per cent to be eligible.
The NSW government's classification of Newcastle has been inconsistent between regional and metropolitan when it comes to funding. The NSW budget included Newcastle as part of Greater Sydney, however the government confirmed the city would be included in the lower bulk-billing threshold.
The government said the scheme would resolve uncertainty around the applicability of payroll tax on contractor GPs, which first arose in 2018.
Dr Milton Sales, who runs the Brunker Rd General Practice at Adamstown, warned in March that if GP contractors were subject to payroll tax from August 1, "the average out of pocket cost for the patient will rise by $12 to $20".
NSW Finance Minister Courtney Houssos said this was the first time the NSW government would provide direct policy intervention to support bulk billing, which is primarily a federal government responsibility.
NSW will also be the first state to legislate a full retrospective waiver for past unpaid payroll tax liabilities for contractor GP wages.
Ms Houssos said NSW Health had estimated that a 1 per cent decrease in bulk-billing equated to about 3000 extra emergency presentations.
The government cited a recent survey which found 72 per cent of people were quite concerned or extremely concerned about the cost of healthcare, 48 per cent of adults were cutting back on healthcare appointments because of cost, and 37 per cent of parents were cutting back on appointments for their children due to affordability.
