SAY NO TO INSURANCE TAXES

Australia is amongst the highest taxed nations in the world when it comes to Insurance Tax. Victoria and New South Wales are the highest taxed states in Australia. The Insurance taxes are not a single tax, but they are tax upon tax upon tax. Below is a simple illustration of how the tax system works in country Victoria.

EDIT - Sunday May 17th 2009  - The Fire Services Levy in Country Victoria has now increased to 68%. This means now the total tax on Commercial Insurance in Country Victoria is now 103.28%

Base Premium                   $100.00

Fire Services Levy (68% Tax)   $68.00

Sub Total                      $168.00

Goods & Services Tax (10% Tax) $16.80

Sub Total                      $184.80

Stamp Duty (10% Tax)           $18.48

Total Insurance Premium        $203.28

   For every $100 spent on Fire & Defined Events (or Accidental Damage) Insurance, an additional $103.28 tax is charged, $68.00 of which is to fund the CFS. If a prudent business or home owner insure their home, and their neighbour does not, the prudent business or homeowner pays the tax, the neighbour does not, yet the CFS will still put out a fire in the neighbouring Business or Home free of charge even though they did not contribute towards the tax. This is an unfair system.

   In NSW if a business owner insures themselves against flood, they pay a higher premium, resulting in a higher fire services levy (tax) paid on their insurance premium. Yet if a flood occurs and the business calls on the Fire Brigade to assist them, the business is charged a call out and service fee as only fire extinguishment is a free service. Yet another example of an unfair system.

Dr Alan Manning of LMI group is an expert on claims, Dr Manning has prepared a video on this subject and placed it on you tube, to hear Dr Mannings perspective, visit http://www.youtube.com/watch?v=nob46qdDsUU 

NIBA have been campaigning against Insurance Taxes for some time, visit http://www.niba.com.au/tax/html/