Queensland shadow treasurer Bruce Flegg is pressuring the state government to drop insurance taxes. He has introduced a bill into the state parliament to abolish stamp duty on life insurance products.
He told insuranceNEWS.com.au he expects a hard fight because taxes are lucrative to state governments, but it’s time they were abolished.
“We’ll fight this one first, and if we can prove our case then it will show the way for general insurance,” Mr Flegg said. “General insurance will be difficult; there’s significantly more expenditure there than on life.
” Mr Flegg said the bill is likely to be debated in the next few weeks. “If we achieve change in Queensland then that will put pressure on the other states,” he added.
The Investment and Financial Services Association (IFSA) has backed the proposal.
IFSA CEO Richard Gilbert says removing tax on life insurance will help reduce “woeful” levels of underinsurance.
“To our knowledge, this is the first time a parliamentarian in any state has acted to address this vital issue,” he said.