Australia’s brokers aren’t the only ones arguing for cuts in premium taxes – British insurers are also cutting up rough at the windfall profits being enjoyed by their government as a result of rising premiums.

The Association of British Insurers wants cuts in the insurance premium tax (IPT). It calculates the British Government will make IPT-related windfall profits of $1.08 billion in the next tax year. The IPT was expected to raise $4.86 billion in this tax year.

By contrast, the Australian taxtake from premiums – extracted by the federal, state and territory governments – comes to just under $3.4 billion. Britain charges a flat 5% on insurance premiums, and the industry wants it cut to 4%.

Australia’s lowest insurance tax rate is enjoyed by Queenslanders, who pay 19%. The world record is held by commercial insurance-buyers in regional Victoria, who pay 91%. Some countries, like Japan, charge no taxes on insurance at all.