South Australia’s insurance duty rate of 11% is the highest in all states and territories, the Business Council says.  

WA and NT charge a 10% duty for all insurance, while the ACT abolished insurance duties in 2016. The council’s comparison applies to general insurance, professional liability and compulsory third party.

NSW, Victoria and Queensland have selectively cut insurance duty rates for indemnity insurance.

The Business Council of Australia says “poorly targeted taxes” make it more difficult to run a company, and they deliver less productive outcomes while creating “indirect regulatory complexity”. 

“Insurance duties can impose a disproportionate burden on professional services, with fields such as legal, mental health and medicine requiring indemnity insurance, and then having to also pay these additional duties,” it says.

“It is a cost burden on top of insurance products often required to do business.”

Victoria is abolishing duties for professional indemnity cover through a 10-year phaseout. NSW’s occupational indemnity insurance sits at 5% and it has abolished CTP duty.

Queensland has removed a percentage fee in favour of a flat notional fee for CTP policies.  

The Business Council compares state and territory planning systems, payroll taxes, land taxes and licensing annually. This year it produced its first ranking of insurance levies.

See the report here.