The
Insurance Council of Australia (ICA) has welcomed the recent move by the NSW Government to scrap stamp duty on several small business insurance products.
In the NSW Government’s 2017-18 State Budget, it has been determined that small businesses with turnovers under $2 million no longer have to pay stamp duty on commercial vehicle insurance, professional indemnity insurance, or product liability insurance products effective January 01 next year.
“NSW small businesses will get welcome financial relief from the removal of these stamp duties, which add up to 9% to premiums,” said ICA CEO Rob Whelan.
Search and compare product listings for Property Insurance from specialty market providers here
“For some small businesses, insurance stamp duties add thousands of dollars to their expenses each year. Though small businesses will still pay stamp duties on other insurance products, the Government is moving in the right direction.
“Taxes on insurance are not only regressive and inefficient: they contribute to underinsurance and non-insurance by discouraging business owners and households from buying sufficient cover for their needs.”
The Budget also cut stamp duties on crop and livestock insurance, and confirmed an earlier announcement to scrap duties from lenders mortgage insurance.
“The ICA will keep arguing for economic reforms that remove taxes on insurance, and make it more affordable for households and businesses to financially protect their assets,” the ICA chief said.
Related stories:
Brokers encouraged to attend ICA forums
Queensland revenue suffers $2 billion blow from Cyclone Debbie
