Allianz congratulates IPART on insurance taxes ‘no brainer’
12 June, 2008
Allianz congratulates the NSW Independent Pricing and Regulatory Tribunal on the recommendations to reduce insurance taxes contained in its draft report on its Review of Taxation.
Nicholas Scofield, General Manager Corporate Affairs, said “Allianz was always confident that a tax as inefficient as the Fire Services Levy (FSL) couldn’t survive the rigorous scrutiny of a body like the Independent Pricing and Regulatory Tribunal.”
“It is only a quirk of history, combined with bureaucratic inaction and lack of political will that could see something like the Fire Services Levy on insurance survive into the 20th Century let alone the 21st.”
“Total taxes on property insurance in NSW resulting from the cumulative effect of Fire Services Levy, GST and Stamp Duty are around 50%. So, on a base insurance premium of, say, $1000 for building and contents insurance, additional taxes of around $500 are levied on top.”
“It is hardly surprising that NSW, with the second highest insurance taxes in the world, has high levels of non-insurance and underinsurance. The situation is even worse in Victoria were the cumulative tax impost on some business insurance recently topped 90%, allowing Victoria to maintain its infamous record of levying the highest insurance taxes in the world, again, thanks to its Fire Services Levy.”
“The horrendous levels of taxation on insurance, due to the combined effect of Fire Services Levy, GST and Stamp Duty, see insurance taxes keeping company with the so-called ‘sin’ taxes on things like tobacco, alcohol and gambling. Yet insurance is a social good.”
“In the context of the tax-on-tax-on-tax effect, it is particularly pleasing that IPART has recognised the folly of insurance taxes in general, and also recommended that Stamp Duty on insurance be reduced.”
“From a tax policy perspective, removing Fire Services Levy from insurance is such a ‘no brainer’, to not make such a recommendation would put a large dent in the credibility of any tax review. Thus, Allianz waits in anticipation of the outcome of the Commonwealth’s review of taxation headed by Ken Henry, Secretary to the Treasury.”
“Surely, recommendations to reduce insurance taxes by the likes of IPART and, one hopes, the Commonwealth’s Henry review, combined with a renewed approach to Commonwealth-Sate financial relations, will heralt the death knell of the tax policy madness that taxing insurance represents.”
Allianz Australia Insurance
Ph. +61 2 9390 6596
Ph. 0416 088 414
Best General Insurance Company 2006*
Best General Insurance Company 2007*
The Allianz Australia Group operates in Australia and New Zealand. It is one of Australia’s largest general insurers, a leading private workers’ compensation insurer, and also provides life insurance.
Allianz Australia delivers a wide range of personal, commercial and corporate insurance products and services. AAL is proud to be of service to more than 2 million policy holders and over 50% of Australia’s top 200 BRW listed companies have some form of insurance cover with the group.
Allianz Australia offers a wide range of insurance products and services including car insurance
, home insurance
and Life insurance
Allianz Australia has approximately 3300 staff. In 2007, the company achieved a gross written premium exceeding AU$2.4 billion and investment assets of approximately AU$5.5 billion. Allianz Australia Group is a wholly owned subsidiary of the worldwide Allianz Group, one of the world’s largest financial services companies.
Allianz’s commitment to social, environmental and economic sustainability has been acknowledged internationally by the Dow Jones Sustainability Index, which recognised Allianz as the most sustainable general insurer in the world in 2007. In Australia, Allianz is a member of the Greenhouse Challenge Plus program, which is a cooperative partnership between industry and the Australian Government that aims to reduce greenhouse gas emissions.
*Australian Banking and Finance Insurance Awards