The Insurance Council of Australia (ICA) has called on the newly elected SA Government to axe state insurance taxes, calling them “inefficient, unfair and inequitable”.

The 11% charge to house, contents and motor insurance discourages homeowners and drivers from taking out the right level of cover, ICA says.

Some households may forgo insurance due to stamp duties, it warns.

ICA says the incoming Marshall Government has a clear mandate for reforming SA’s economy, and tax reform should be a priority.

It calculates removing stamp duties will improve the state’s economic performance by several-hundred million dollars.

CEO Rob Whelan says ICA looks forward to working with the new Government on reforms and reducing flood risk through mitigation.