Brokers lobby on insurance tax: Call for action after hikes in fire services levy
Insurance & Risk Professional, February 2008
NIBA Chief Executive Noel Pettersen urged politicians to make insurance taxation an “emerging issue of priority” as the first all-Labor Council of Australian Governments (COAG) met in December.
“The question of taxation has got more chance of being solved now there’s a Labor government in power federally,” he said. “Perhaps we’ll see some consistency across the states.”
NIBA has called on the governments of New South Wales, Victoria and Tasmania to abolish the fire services levy (FSL) and adopt a more equitable method of funding. Other states fund fire services through property rates.
“Insurance buyers, particularly in Victoria and New South Wales, are among the highest taxed in the world,” Mr Pettersen said.
COAG is an intergovernmental forum that includes Prime Minister Kevin Rudd, state premiers, territory chief ministers and the President of the Australian Local Government Association.
The first meeting under the new Federal Government took place in Melbourne on December 20.
Mr Pettersen’s comments followed the latest round of FSL increases. Following December’s hike in levies some policyholders are now paying more than 80% of their base premium in GST and stamp duty.
Commercial policyholders in Victoria pay 52% FSL (up from 49%) compared with 36% in NSW (up from 34%).
The levy for householders in rural Victoria is 22% (up from 20%), and the NSW householder levy is 20% (up from 19%).