Australia is by far and away the most heavily taxed country in the world when it comes to Insurance. For reference, residents in California, which has the highest incidence of fire in the world pay 2.4% tax. In Tasmania it is over 60.77%. That is 25 TIMES MORE!
It is a completely inappropriate and unjust method of taxation to fund the fire and civil defence authorities. The entire community benefits and so it is only reasonable that we all pay equitably.
Victoria removed the tax after the terrible “Black Saturday” bushfires as the government finally realised that such a narrow tax only leads to an increase in under insurance, or worse still, no insurance. The reasoning behind this being the higher the price of a good or service the less attractive and likely it becomes for a consumer to purchase it. This tax in many cases has pushed the cost of insurance so high that many simply cannot afford it. This creates huge burdens for home and business owners effected by insured perils, as well as employees, the communities and the entire economy.
We are now pleased to say that New South Wales has followed suit and has at long last begun the process of phasing out of this unjust tax (this website is proud to have had a small part in influencing the government’s decision). Unfortunately, Tasmania still has this tax over its commercial insurances.
While we are now seeing a move in the right direction the fight is far from over, this is due to the Stamp Duty Tax that still applies to insurance premiums and the GST. Meaning that anyone that has any form of property insurance is not only paying two forms of tax but a tax on the tax.
We urge the State and Territory governments to remove the tax from insurance. We genuinely hope that it will not take such a huge loss of life and damage to property before the governments realise the adverse effect that these taxes promote.
Please take a few minutes to navigate around the site, go to the chart page and see just how much you are paying in your state and the tax on tax effect of insurance. Go to the Fact or Furphy
section and learn the truths and myths that surround this topic.
To read further, see a discussion paper on 'What you need to know about taxes on insurance'.
We encourage you to register your support for the "No tax on insurance" initiative by listing your name on our electronic petition. Thank you for your support.