IAG has called for the abolition of stamp duty on insurance in its submission to the Federal Government’s tax discussion paper.

It says there is a “clear social and economic case” for eliminating or at least reducing the state-based levies.

“These tax regimes are inappropriate, regressive and based on historical circumstances rather than equity. These regimes contribute to underinsurance and non-insurance, with consequential negative fiscal impacts when the public purse is inevitably called upon in times of climate-related disasters.”

As previously reported by insuranceNEWS.com.au, the Insurance Council of Australia (ICA) has also made a submission calling for abolition.

Despite a number of previous reviews having recommended removal, ICA believes this “wide-based tax reform initiative” provides better hope for a breakthrough.