The Victorian Competition and Efficiency Commission (VCEC) has told the Victorian Government it should develop and implement an agenda for reforming state taxes, including stamp duty taxes on insurance.

The VCEC report, Securing Victoria’s Future Prosperity, recommends that inefficient state taxes such as stamp duty on insurance policies should be eliminated and it has recommended that the Government develop and implement an agenda for reforming state taxes by releasing a green paper outlining options for reform.

It is seeking further feedback and submissions on its report and draft recommendations by December 16, with a final report due to be provided to the Government by January 27.

The National Insurance Brokers Association has welcomed the recommendations. CEO Dallas Booth says the VCEC’s report is “yet another contribution to the long list of expert analysis that has identified stamp duty on insurance as an unnecessary burden on those wanting to protect their property”.

“Increased premiums through the imposition of stamp duty results in some people either not insuring or underinsuring, depending on the type of insurance being purchased,” he said.