Insurers are at a deadlock in their battle with the NSW Government over its decision to impose a $69 million annual tax to help fund the State’s $600 million rescue package for HIH victims.

ICA Executive Director Alan Mason is canvassing support from the industry in the hope that NSW Treasurer Michael Egan can be convinced to change his mind.

But at a meeting late last week with Mr Egan, a delegation led by ICA President Raymond Jones got nowhere. Mr Egan said in a statement that the $69 million “represents approximately 3.8% of the national profits of the largest 10 insurers”. New legislation will be intended to prevent insurers from passing the additional impost on to consumers. But the insurers say they’ll have to pass it on.

“It’s the best option available to us of getting [sic] the insurance companies to chip in to some extent,” Mr Egan said. Mr Jones said the Treasurer is “laundering” a fourth tax on policyholders, which comes on top of a 19% fire services levy, 10% GST and 10% stamp duty, which already raise $1.5 billion for NSW.

The battle continues, with neither side giving way. We’ll keep you posted.