Insurance stamp duty halved in NSW
The New South Wales Budget will slash stamp duty on general insurance from 10 per cent to 5 per cent, which will affect not only household insurance but also mortgage, travel and public liability insurance. This will bring taxes on these insurance classes into line with motor vehicle and professional indemnity cover.
The Insurance Council of Australia has lobbied hard for the changes and says that the reduction will provide timely relief for consumers and small business, and remove the disincentives to insurance.
However, although the Treasurer, Michael Egan, said that New South Wales will have the lowest insurance stamp duty rate in Australia, household policies are still subject to the 10 per cent GST and the 18 per cent fire services levy.