ICA calls for insurance tax cuts
ICA’s submission to the Federal Government review of Australia’s Future Tax System pushes for the complete abolition of general insurance taxes.
The insurers’ peak body says the reform of general insurance taxes should be a key priority in the review, given the “large deadweight costs that are associated with the taxation of insurance premiums”.
It says the Government could readily accommodate the $1.7 billion cost of abolishing state-based stamp duties.
The estimated effects in the long run would be considerable, with ICA claiming general insurance tax reform would yield a gain to real household consumption of almost $2.6 billion.
The submission follows the release on October 17 of the NSW Independent Pricing and Regulatory Tribunal final report on state taxation, which advocated cuts to insurance stamp duty and the abolition of the fire services levy.
ICA says it is time the Federal Government improved on the Intergovernmental Agreement of 2000 which eliminated a number of inefficient taxes but overlooked imposts on general insurance.
The insurers’ peak body says the reform of general insurance taxes should be a key priority in the review, given the “large deadweight costs that are associated with the taxation of insurance premiums”.
It says the Government could readily accommodate the $1.7 billion cost of abolishing state-based stamp duties.
The estimated effects in the long run would be considerable, with ICA claiming general insurance tax reform would yield a gain to real household consumption of almost $2.6 billion.
The submission follows the release on October 17 of the NSW Independent Pricing and Regulatory Tribunal final report on state taxation, which advocated cuts to insurance stamp duty and the abolition of the fire services levy.
ICA says it is time the Federal Government improved on the Intergovernmental Agreement of 2000 which eliminated a number of inefficient taxes but overlooked imposts on general insurance.