The WA Government will earn $592.9 million from insurance taxes this financial year, up 7% on 2012/13.

State budget papers show insurance taxes rose 13.8% last financial year but are now expected to grow more slowly in line with economic activity as the mining boom tails off.

A “representative household” will pay about $255.06 in compulsory third party (CTP) insurance, with $25.51 stamp duty on that cover, plus $160.16 stamp duty on general insurance.

CTP premiums, “which remain the lowest in the nation”, will increase 4.1%.

The Government has budgeted for a $63 million dividend from the Insurance Commission of Western Australia (ICWA) for this and last financial year, after failing to rush through a bill enabling last year’s payment before June 30.

The controversial decision to take a dividend on ICWA profit has raised concerns about the commission’s ability to earn investment income to pay claims.

The ICWA stands to gain a windfall of more than $1 billion from its role funding the liquidator of the failed Bell Group. The action against a consortium of 20 banks continues, making it one of the country’s longest-running court cases.