NIBA's Tax Information - Brokers give IPART strong support

Brokers give IPART strong support
NIBA Media Release, 3 July 2008

Insurance brokers have wholeheartedly welcomed the NSW Independent Pricing and Regulatory Tribunal’s (IPART) draft report recommending the abolition of the fire services levy and reduction of stamp duties on insurance products.

National Insurance Brokers Association (NIBA) Chief Executive Noel Pettersen today expressed strong support for the tribunal’s findings.

“The draft report not only recognises but highlights the inequality that applies to the taxation of insurance, a view consistently held by NIBA,” he said.

The report identifies stamp duty and the fire services levy as the least efficient state taxes that add to the problem of underinsurance and non-insurance.

NIBA has consistently argued for the removal of cascading taxes on insurance premiums that have made policyholders in New South Wales and Victoria the highest taxed in the world.

“These taxes add to the cost of doing business in New South Wales, they deter people from taking out appropriate levels of insurance and fly in the face of fundamental principles of good taxation,” Mr Pettersen said.

NIBA has thrown its support behind IPART’s proposal to reduce stamp duty on general insurance from 9% to 6% with the view to completely phasing it out over the long term.

IPART proposes the replacement of the fire services levy with a corresponding increase in contributions from local councils through a phased implementation of increases in local council property rates.

^ENDS

^{For further information contact Noel Pettersen on 02 9459 4300 or visit www.niba.com.au/tax}