The pressure on State Governments to ease the heavy cost burden on insurance policyholders has increased following a call by a Federal Government appointed panel to scrap all taxes and levies.
The Australian Financial Centre Forum, established to examine ways of turning Australia into a financial hub, has joined the Henry tax review and numerous other reviews and inquiries in identifying the taxes as inefficient and unfair.
The report identified the following taxes:
• Stamp duty: Imposed on both life and general insurance by all States and Territories and acts like a “selective turnover tax”. Rates vary from 7.5% in Queensland to 11% in South Australia.
• Fire Services Levy (FSL): A levy of up to 84% is applied to commercial and household insurance in NSW, Victoria and Tasmania.
• Insurance Protection Tax: Imposed by the NSW
Government following the collapse of insurer, HIH.
Cannot be passed on to the policyholder and is therefore a
“tax on the company shareholders.”
Government following the collapse of insurer, HIH.
Cannot be passed on to the policyholder and is therefore a
“tax on the company shareholders.”
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Comment: I have been saying this for years!
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