The National Insurance Brokers Association is to write to the Treasurer and Shadow Treasurer seeking their commitment to reforming the insurance tax and levy system.
NIBA CEO Dallas Booth made the comments after the Government agreed in principle to phase out state and territory taxes.
Responding to the Productivity Commission’s report on the Barriers to Effective Climate Change Adaption, which said taxes make up a “significant portion of the cost of insurance”, the Government said it “provides in-principle support to tax reform that reduces the distortionary effects of Australia’s tax system on efficient resource allocation”.
However, Booth called for more concrete commitment from Government.
“Yes, reform can be difficult, but federal and state governments have had report after report going back as far as the HIH Royal Commission recommending changes to insurance taxes,” he said.
“NIBA will be writing to the Treasurer and Shadow Treasurer seeking their commitment to leading reform in this area following the forthcoming Federal election,” he continued, “and will continue to push for the removal of unfair taxes and levies on insurance, which act as a disincentive for individuals to take up adequate cover.”