Federal Treasury wants to abolish a range of state and territory taxes worth $4.4 billion – but there’s no sign it will propose such a move for taxes on insurance.

Insurance Council of Australia spokesman Rod Frail told Sunrise Exchange News insurance wasn’t on the list of abolished taxes signed in the 1999 intergovernmental agreement.

Now the move to curb the states’ fiscal excesses may make it even harder for the industry to push the insurance taxes issue on to the Federal Government’s agenda. 

“We’ll keep on plowing on with the tax issue, but it is difficult because the issue is outside the Government’s current taxation priorities.”

The mainstream media and consumer bodies have recently taken more notice of insurance taxes, which Mr Frail says is good news for the industry.

The Australian Consumers’ Association has achieved some media attention for the issue, with Policy Officer Catherine Wolthuizen telling Melbourne’s Herald Sun yesterday that taxes “reduce the affordability and, for some people… make the difference as to whether they take it out or not”.