Thursday 26 September 2024

Queenslanders could see an eight per cent reduction in their premiums if the next State Government removes stamp duty on insurance, a new report from the Insurance Council of Australia (ICA) finds today.

Published in the lead up to the October state election, A Stronger Queensland outlines 12 policy recommendations that are vital for the next Queensland Government to implement to ensure Queenslanders remain protected and secure.

Queenslanders who take out insurance to protect themselves and their property are double taxed by the GST and stamp duty.

In the current financial year, Queenslanders are forecast to pay $1.7 billion in stamp duty on their insurance policies, up from just over $1 billion in 2019-20.

In the past five years alone, the Queensland Government has collected $6.4 billion in stamp duty from insurance customers.

Abolishing stamp duty on insurance would provide immediate cost of living relief for Queenslanders and encourage greater take-up of insurance at a time when it is needed most.

Queensland is Australia’s most extreme weather-exposed state, with insurers receiving around $4.5 billion in claims from insurance catastrophes in Queensland just in the last three years.

To safeguard Queensland against worsening extreme weather, the next State Government should also significantly increase its investment in mitigation funding.

Recent analysis undertaken for the ICA shows that a five-year, $730 million investment in mitigation projects across Queensland would deliver $6.3 billion in savings – a return on investment of 8.6.

The State already has successful mitigation investment programs, such as the Resilient Homes Fund and Household Resilience Program, that have demonstrated benefits for the community which should be supercharged by the next Queensland Government.

Other policy recommendations outlined in A Stronger Queensland include:

• Review land use planning arrangements to prevent the development of new homes in high-risk areas
• Design and construct stronger homes by including the principle of resilience in building standards
• Standardise safe and timely coordinated clean-up of waste and debris following a natural disaster
• Improve data standards and flood mapping to better prepare for and respond to disasters
• Establish Queensland as a world leader in extreme weather research and innovation
• Align with all other states and territories by allowing interstate tradies to work in Queensland, creating a more responsive workforce following extreme weather events

Quotes attributable to ICA Chief Operating Officer Kylie Macfarlane:

At a time when insurance is needed more than ever, it’s madness that state governments tax homeowners and renters for taking out insurance to protect themselves.

The most immediate way to reduce insurance premiums in Queensland would be the abolition of the nine per cent stamp duty charged on insurance premiums.

If the next Queensland Government does not abolish stamp duty on insurance, it should commit to investing the revenue collected by this tax in mitigation initiatives that directly benefit Queenslanders and put downward pressure on insurance premiums.

The ICA encourages whoever wins the Queensland election in October to urgently take up the 12 policy recommendations contained in A Stronger Queensland to better safeguard the State’s future and improve community outcomes across the State.