NIBA attacks insurance tax
NIBA has attacked the ongoing heavy taxation of insurance in a submission to the Federal Government review of Australia’s tax system.
Assistant Treasurer Chris Bowen has pledged the review will closely examine insurance taxes after a review by the NSW economic regulator was heavily critical of such imposts.
But NIBA CEO Noel Pettersen is not convinced state governments are ready to give up the lucrative income stream.
“I think NSW is pretty doubtful at the moment given its apparent financial difficulty,” he told insuranceNEWS.com.au. “We keep getting put back in the priority queue.”
NIBA argues in its submission that NSW, Victoria and Tasmania should adopt a council rates-based system of fire services levy collection rather than levy property insurance premiums. It also calls for the total abolition of stamp duty on premiums.
“Rates-based levies have been proven to work in other areas and I don’t understand why eastern states can’t adopt a similar scheme,” Mr Pettersen said.
Assistant Treasurer Chris Bowen has pledged the review will closely examine insurance taxes after a review by the NSW economic regulator was heavily critical of such imposts.
But NIBA CEO Noel Pettersen is not convinced state governments are ready to give up the lucrative income stream.
“I think NSW is pretty doubtful at the moment given its apparent financial difficulty,” he told insuranceNEWS.com.au. “We keep getting put back in the priority queue.”
NIBA argues in its submission that NSW, Victoria and Tasmania should adopt a council rates-based system of fire services levy collection rather than levy property insurance premiums. It also calls for the total abolition of stamp duty on premiums.
“Rates-based levies have been proven to work in other areas and I don’t understand why eastern states can’t adopt a similar scheme,” Mr Pettersen said.