News

Insurance tax removal on the agenda

News >> News on Insurance

Insurance tax removal on the agenda

by Terry McMullan 

The Federal Government has put insurance taxes back on the national tax reform agenda, saying it’s an inefficient way to collect revenue.

The decision to include the state-imposed taxes in the discussion paper for its October tax forum examining Australia’s taxation system has been hailed as a positive step towards making insurance more affordable.

The Government says the states have taxes on almost all general and life insurance polices, and “in comparison to other countries, Australia has high taxes on insurance”.

“Insurance taxes have been a growing source of revenue for the states, raising about $4.6 billion in 2009/10.”

The paper notes that while the taxation rate hasn’t risen, revenue has due to increased premiums.

“Insurance taxes are an inefficient way of raising revenue and can disproportionately impact on some sections of the community, such as those on low incomes,” the paper said.

“Increasing the price through the imposition of a tax on insurance premiums will result in some people either not insuring or underinsuring.”

NIBA CEO Dallas Booth told insuranceNEWS.com.au the association is “delighted with the move to include insurance in the taxation review.

“Insurance is a community benefit and should not be subject to penalty taxes.”

The Insurance Council of Australia (ICA) told insuranceNEWS.com.au it “supports the recommendations of the Henry Tax Review on insurance taxes and looks to the tax forum as being the pathway towards implementing this recommendation”.

“ICA supports the research produced by the Finance Industry Council of Australia setting out the significant economic benefits to Australian households from the reform of state transaction taxes.

“This research also provides the tax forum with alternative revenue sources for removing all stamp duties including a better payroll tax system, improved land taxes and adjustments to the GST.”

Mr Booth says NIBA is happy to work with Treasury “to find a better way” of generating revenue for the states.

The tax forum will be held on October 4-5. There will be 48 participants and 21 observers, with a further 56 participants and five observers from organisations including ICA selected by Treasury.

A further 52 participants and 20 observers will be selected through an expressions of interest process, which is now open.  

This article is provided kindly by Insurance News

Last changed: Sep 08 2011 at 9:16 PM

Comments

  1. None Found

Add Comment

Latest News

Robert Cooper - one of 100 faces of small business

This week it was announced as part of Small Business Week,  that Robert has been named one of the 100 faces of small business for a State Government promotion on the great value that small businesses play in the State of Queensland.

You can see Robert's entry here:

It is the third accolade for CPR Insurance Services in a month and after seven and a half years in business is a real pep up for the company.

For Robert, it is the culmination of many years experience, becoming well qualified, experiencing the highs and lows of a career and always wanting to contribute to his community. Sometimes, these things just come together and you receive recognition for your efforts.

Robert says that there is no doubt that starting your own business is a huge challenge, but with the right research and planning, the right people around you and a good set of values that you apply to the vision of the company, you have a very good chance of making it all succeed.

Robert says he is lucky. He has a strong supportive Wife, Mandy, who is also part of the business, along with efficient and hard working staff such as Julia McLauchlan and Aidan Harmer who are building up their own skills in a learning environment. 

However, the most important and most supportive people for CPR Insurance Services are our clients who have stuck by us and supported us over the past seven years. Our focus remains on providing the best possible service we can and always acting in their best interests. To all our clients, we say thank you!

read more

CPR Insurance wins Brokerage of the year

CPR Insurance Services picked up the award for the Best Brokerage (1-5 staff) in Australia, last Friday Night (4th May 2018) at the Insurance Business Magazine Awards held at the Westin in Sydney.

Judging came from various parts of the industry. It is a great honour to be recognised for our hard work and particular Business values we follow. A full list of winners is listed here.

Success comes from having great staff, and we thank Aidan Harmer and Julia McLauchlan as important support staff for helping us win such an award.

CPR Insurance has been in operation for more than 7 years now and is only successful because of the wonderful support from our staff, insurers and most importantly, our fantastic clients who put their faith and trust into our company to be their Risk Advisers and Brokers. 

Thank you to all.

read more