The insurance industry has escaped any draconian changes in this year’s Federal Budget, but this could be the calm before the storm because the Government’s review of insurance is due to be unveiled in September.

The only changes that could affect brokers are some changes to car fringe benefit tax, where a flat rate of 29% will be introduced along with a $5000 write-off for new car purchases in the 2013 financial year.

During that year there will an immediate write-off of any assets purchased that are under $5000. 

Treasurer Wayne Swan has announced a new Tax System Advisory Board, and says the impending tax forum “will provide an important opportunity for both participants and the broader Australian community to have their say about options for further reforming our tax and transfer system”.

Mr Swan did not say if this review and the new advisory board will examine taxes on insurance products.

In the Budget papers, the Federal Government has allowed $675,000 for claims payments from the Housing Loan Insurance Company. This allocation will also continue for the following three financial years until 2015.