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Insurance Business | 28 May 2013, 12:00 AM Agree 0
The stamp duty rise could force up the cost of insurance and exacerbate financial pressures for policyholders, says an industry boss.
  • Robert Cooper | 28 May 2013, 04:22 PM Agree 0
    The current 7.5% stamp duty is on the base premium plus GST, so the State Government already gets an extra 10% in addition to the current levy. Why make the insurance industry pay for their bad spending decisions?
  • John Wyatte | 29 May 2013, 08:39 AM Agree 0
    In the north we have seen our insurance premiums increase by over 300% in 2 years with a resultant windfall to the state government in increased stamp duty. This unfair tax will be borne by those least able to pay. Those people whose premiums increased the most will pay the most tax. Similar to how a luxury tax is imposed.
  • Male Broker | 29 May 2013, 10:54 AM Agree 0
    Can't believe this is an vic we had an FSL at close to 100% - If the broker can't sell this tiny increase they shouldn't be broking!
  • Dean McCauley | 29 May 2013, 06:06 PM Agree 0
    @ Robert Cooper - agree 100% mate.
    @ Male Broker - a very naive and short sighted comment if ever there was one. Don't you think it would be a wise investment by the Government to do everything in its power to keep insurance premiums as low as possible (ie don't impose additional costs) to encourage more people who are not adequately insured to be adequately insured and those that don't have insurance to get some, which will in turn relieve the financial pressure on Governments by way insurers and reinsurers picking up more of the tab during times of natural disasters? And, when more people have adequate insurance means a higher premium pool to cope with such disasters. Comments like yours suggest that you have no interest in the long term viability of the insurance sector and only care about how many sales you get. Honest and competent Insurance Brokers and Agents are much more than just salespeople.
  • Male Broker | 30 May 2013, 03:37 PM Agree 0
    @ Dean - Sorry to say but 1.5% is not the end of the earth...last time i checked the state coffers were empty so rather than we all go broke and ecomonmy struggle for a number of years (Effectiving income) this small impost isn't going to effective underinsurance!
  • John Wyatte | 31 May 2013, 07:56 AM Agree 0
    Male Broker needs to understand that the increase is not 1.5 but actually 1.65 as GST is levied on the stamp duty. This will bring the total tax on an insurance policy up to 19.63%. The policy premium is not just based on house and contents value, the main factor in North Queensland is postcode. Try telling a pensioner who has seen an increase in premium from $1200 to $3700 over two years that an extra $58 is negligible or a unit holder whose premium has increased from $1200 to $8000 that an extra $132 is nothing to complain about. This is an unfair tax that penalises people based on postcode, not ability to pay.
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