Mega-broker Marsh has begun to beat the drum over the excessive state taxes responsible for  discouraging property owners in NSW and Victoria from purchasing property insurance. A research project commissioned by Marsh from National Economic Research Associates has uncovered some more troublesome facts.

The report says that based on national averages, 31% of the houses destroyed in the recent NSW bushfires would not have had property insurance. Half of these would have been uninsured because of high state taxes and levies other than the GST. 

Deloitte Touche Tohmatsu revealed in July last year that state taxes for rural areas in NSW and Victoria are almost as high as the premium itself. Taxes in NSW include the fire services levy at 19%, and 10% each for GST and stamp duty. That amounts to around 44% of the total cost of property insurance.

Marsh Chairman John Richardson said the current tax regime tends to most heavily tax those who can least afford to pay the premiums. The study revealed that state taxes and levies other than the GST has doubled the number of property owners who are currently uninsured.