The Insurance Council of Australia (ICA) believes the Federal Government’s tax discussion paper could provide a crucial breakthrough on the long-awaited abolition of insurance stamp duty.

A number of previous reviews have recommended ditching the inefficient taxes, and ICA believes it is more important than ever to push the point home.

“A wide-based tax reform initiative provides the best prospect of removal,” GM Policy Regulation John Anning told insuranceNEWS.com.au.

Westpac also backs the abolition of stamp duty on insurance, saying that the taxes impact affordability and can distort consumers’ purchasing behaviour.

The next step will be the development of a green paper later this year.

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