The WA Government’s proposal to change the way it levies stamp duty on insurance policies will discourage investment in the state, says Brad Greer, President of risk management peak body ARIMA.

He says the industry-accepted convention has always been that stamp duty on insurance premiums is payable only on that portion of the premium which relates to risks insured in the state. Duty is paid to other states for insured risks located in those states.

But now the Government wants to tax all policies – whether the risks be in WA, another state or even overseas. “And to make it worse, the ruling is to apply whether or not the policy is underwritten in WA,” Mr Greer said.

ARIMA has written a submission to WA Treasurer Eric Ripper, joining the chorus of protests from business and insurance bodies.