SA’s insurance revenues will grow 7.4% in the next financial year as rising domestic and commercial premiums offset a drop in compulsory third-party (CTP) proceeds, according to state budget forecasts.

Insurance taxes are expected to rise to $448.6 million from an estimated $417.8 million this year, before reaching $462.3 million in 2016/17.

Underlying gains from insurance stamp duty are predicted to reflect growth of about 4% in domestic and commercial insurance premiums.

Revenue will also benefit from a one-off payment of back-taxes related to some insurance policies.

“From 2014/15, underlying revenue from insurance duty is expected to grow modestly, reflecting expected growth in premiums,” the forecast says.

CTP revenue will decline following moves to cut prices, including shifting to a no-fault scheme for catastrophic injury.

Most families will save $148 on each car they register over the next two years; insurance duty revenue on CTP premiums is expected to be about $14 million lower in the next financial year and $22 million lower in 2014/15.