Scrapping insurance taxes would save $575 million
Abolishing inefficient insurance taxes would save governments $575 million over five years and increase public spending by more than $5.5 billion, according to research commissioned by the Insurance Council of Australia (ICA).
The study by Deloitte Access Economics outlines the savings if insurance-based stamp duties and the NSW emergency services levy were replaced with an increase in more efficient municipal land rates.
NSW would benefit most ($400 million over five years), followed by the Commonwealth ($185 million) and Victoria ($98 million).
The household spending increase across Australia would be $5.52 billion over five years.
“The modelling shows significant rises in both household consumption and government revenue when governments implement this long-overdue financial reform,” ICA CEO Rob Whelan said.