Victorian farmers attack insurance taxes
The Victorian Farmers Federation (VFF) has weighed into the insurance taxes debate, calling the impost on farmers “a disgrace” and demanding a move to a broad-based funding system.
In a submission to the Victorian Bushfires Royal Commission, VFF President Andrew Broad said improvements to bushfire preparation are always welcomed, but they should not be funded through increases to the fire services levy (FSL).
In May the FSL on commercial policies in rural Victoria was lifted to 68% from 63%.
Mr Broad says farmers now pay more of their insurance bill in taxes than for the service itself, and he is concerned the impost could rise as high as 80%.
“When farmers are literally paying more in tax than the cost of a premium, is it any wonder that there is such a high level of under and non-insurance across country Victoria?”
The VFF says the combination of GST, stamp duty and the FSL means Victorian farmers pay $2033 for $1000 in premium.
“It is a disgrace to expect [farmers] to contribute to higher taxes to fund improvements to policies that will benefit everyone,” he said.
“Insurance is critical; the solution is simple,” Mr Broad said. “It’s time for the State Government to scrap the FSL and move to a fairer, broad-based funding approach.”
In a submission to the Victorian Bushfires Royal Commission, VFF President Andrew Broad said improvements to bushfire preparation are always welcomed, but they should not be funded through increases to the fire services levy (FSL).
In May the FSL on commercial policies in rural Victoria was lifted to 68% from 63%.
Mr Broad says farmers now pay more of their insurance bill in taxes than for the service itself, and he is concerned the impost could rise as high as 80%.
“When farmers are literally paying more in tax than the cost of a premium, is it any wonder that there is such a high level of under and non-insurance across country Victoria?”
The VFF says the combination of GST, stamp duty and the FSL means Victorian farmers pay $2033 for $1000 in premium.
“It is a disgrace to expect [farmers] to contribute to higher taxes to fund improvements to policies that will benefit everyone,” he said.
“Insurance is critical; the solution is simple,” Mr Broad said. “It’s time for the State Government to scrap the FSL and move to a fairer, broad-based funding approach.”