Australia is by far and away the most heavily taxed country in the world when it comes to insurance. For example, residents in California, which has the highest incidence of fire in the world pay 2.4% tax. In New South Wales 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 increased under insurance, or worse still, no insurance. This creates huge burdens for home and business owners effected by insured perils, and on employees, the communities and the entire economy. We urge the New South Wales and Tasmanian governments to follow the suite of all the other states and territories and move fire service levy from insurance. We genuinely hope that it will not take such a huge loss of life and damage to property before these last two state governments realise the adverse effect that these taxes promote.
All of us in the community benefit from fully funded and well trained emergency services. All of us in the community need to pay our fair share, not just those that are prudent and risk averse enough to insure fully.
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.