The NSW Government expects to raise $754 million in stamp duty from insurance contracts in the current financial year.

An insuranceNEWS.com.au analysis of the state’s budget papers shows the Government is forecasting insurance stamp duty revenue will exceed $800 million by 2014.

It will rise to $787 million in the 2012/13 financial year, $819 million in 2013/14, and $852 million in 2014/15. This indicates a 4.4% rise during the five years from July 1, 2010.

The NSW Government expects to raise $698 million from the emergency services levy in the current financial year, which covers both fire services and the State Emergency Service, but this is expected to drop to $662 million in the 2013 financial year.

The figure is again expected to drop during the subsequent financial years by small amounts, giving a five-year downward trend of minus 0.6%.

According to the NSW budget papers, the Government is facing $8.3 billion of insurance claims in the current financial year. This is expected to rise to $9.8 billion in the 2015 financial year.

These include WorkCover Authority claims, outstanding HIH motor and building liabilities as well as police and fire service death and disability schemes.

The forecast increased liabilities in the workers’ compensation scheme are due to higher claims from emergency services employees.

These claims are higher than previously estimated, and the State Government has established a consultative group to look at reforming the scheme to make sure it remains viable.

The Insurance Protection Tax on insurers to fund HIH liabilities was abolished on July 1 this year, as the claims are now fully funded.

To cover the cost of the various insurance schemes, the Government is estimating it will collect $1.2 billion in premiums in the current financial year – an 18.5% increase on the previous year.