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Vic insurance tax rates are leading the world
30 Apr 2002
Victorians will pay more than $721 million in insurance taxes in the 2001-2002 financial year, with revised Budget figures showing a 12.4 per cent rise of $79.5 million on the previous year. The Insurance Council of Australia claims that Victoria has the highest tax on insurance in the world. Tax revenue has increased significantly on general insurance policies in recent years, while stamp duty taxes rose almost 26 per cent between 1999 and 2001. The property boom, increasing premiums and the impact of the GST have all contributed to the rises.
ICA spokeswoman Sandie Watson says that country people are the hardest hit, while Access Economics' Geoff Carmody said that the taxes were "dumb" and made insurance too expensive for low-income earners. A spokesman for the Victorian Treasurer claimed, however, that tax rates on insurance have not increased under the Bracks Government. He said that the revenue increase was due to rising premiums.
Herald Sun, 30/04/2002, page 11.
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