The ACT is the first state or territory government to offer sporting and non-profit groups exemption from paying stamp duty on their premiums as part of a strategy to tackle soaring insurance premiums.

The move is an ironic rejoinder to the industry’s bid to eliminate state and territory taxes like stamp duty from premiums. It’s also a popular and relatively revenue-neutral move because the ACT is already reaping windfall returns from the stamp duty it imposes on all other premiums transacted in the territory.

Treasurer Ted Quinlan told the Legislative Assembly he will introduce amendments to the Duties Act 1999 in the autumn sittings that will exempt non-profit groups from having to pay stamp duty on their premiums.

Mr Quinlan has also held discussions on the possibility of the ACT participating in insurance pooling arrangements already being planned in NSW and Victoria.

Peter Jamvold, ICA’s Group Manager Southern Division, says the ACT stamp duty exemption move is welcome and other governments should follow suit. “When premiums rise, so does the tax. So governments are in an excellent position to help mitigate the issue by returning profits.”