OZ Businesses Pay Highest Property Insurance Tax Rates In The World

by Mary Swire, Tax-News.com, Hong Kong

14 November 2001

Businesses in New South Wales pay the highest tax rates on property insurance cover in the world, according to a national survey conducted by the NRMA (National Roads and Motorists Associations) Insurance Group

The survey questioned 1200 businesses and reveals that A$65, a total of stamp duty, fire levies, and GST, is added onto every $100 of premiums that are paid to insure commercial property in New South Wales. It can even be as much as $91.80 for every $100 premium paid in rural Victoria.

This compares with figures of 2 per cent in Singapore, 10 per cent in the United Kingdom and absolutely no tax is imposed on commercial property insurance in Hong Kong. The survey says 83 per cent of respondents have called for a review of the state taxes in Australia, and this is particularly urgent in light of the fact that such high taxes are preventing many businesses from taking out adequate insurance cover.

'The level of taxation on insurance is having a serious impact on underinsurance in the business sector,' said NRMA business insurance chief general manager Doug Pearce.

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