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19 May 2013
The Insurance Council of Australia (ICA) is ready for the next round in its fight against taxes, with South Australia its next target.
It comes after the SA Government agreed to an Opposition push for a review of the state’s tax system.
An ICA spokesman says the council will submit a case for the removal of stamp duty from premiums, which it calls a “disincentive to purchasing insurance”.
SA has already removed its fire services levy on insurance, moving to a tax on property in 1999.
ICA says it is monitoring the review and maintains “the complete abolition of state levies on insurance and stamp duties is achievable by 2015”.
SA Shadow Treasurer Iain Evans says insurance duties in the state are 53% above the Australian average.
But Treasurer Jack Snelling warns any tax reform will need to be “revenue-neutral” and cannot affect the state’s budgetary position.
Submissions to the review, which will consider the fairness of the tax system and its impact on individuals and business, are due by January 31.
The Government says any resulting policy changes will be taken to the next state election, scheduled for March 2014.
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