Growing insurance expenditure by Northern Territorians will add $9 million to NT tax revenues in 2014/15.

The NT Budget, brought down by Treasurer Dave Tollner last week, forecasts revenue from taxes on insurance to grow to $46.6 million in 2014/15.

Last year’s budget forecast that insurance taxes would raise $37.7 million in 2013/14, but budget papers reveal that this is likely to be $44.4 million, “reflecting improved economic conditions”.

Despite the windfall, the contribution of insurance taxes to NT revenue is relatively modest: just 6.4% of projected revenue of $732.7 million from taxes and royalties for 2014/15.

The NT imposes a 10% stamp duty on general and life insurance policies. The Government provides stamp duty concessions for workers’ compensation insurance and private health insurance “to reduce the costs of such insurance” for Territorians.