Tasmania has become the first state to abolish stamp duty on insurance premiums for businesses and community groups. The initiative will save Tasmanian taxpayers around $1.7 million per annum. Premier Jim Bacon said the exemptions will reduce the cost of public liability insurance for community organisations and businesses.

However, the exemption does not extend to the public liability components of integrated policies, such as normal house and contents insurance policies. 

NIBA has welcomed the move, with CEO Noel Pettersen saying it signals the first step in the battle against state-imposed taxes on insurance. He said brokers welcome the move and the example it sets to the other states and territories that continue to ignore this issue.

“The value of the tax relief provided in the past two Tasmanian budgets is four times greater than the tax relief granted by the Victorian Government in its past two budgets,” he said.

Other duties abolished by Tasmania include hire of goods duty, lease duty and premium duty. 

Mr Bacon announced the changes last week at the launch of the “Our Communities” mutual insurance scheme for not-for-profit organisations in Victoria and Tasmania – a scheme developed by local councils with the support of the state governments.