The Tasmanian Government expects to collect $79.6 million in insurance taxes next financial year, up 12.3% on the $70.9 million forecast for this year.

It reflects an increase in insurance premiums paid and the first full year of general insurance tax rises that were introduced last October, according to the state budget.

The tax increases were brought in to compensate for falling revenue, sparking criticism from the Insurance Council of Australia.

The state’s insurance tax take is expected to increase steadily to $90.2 million by 2016/17.

The figures include life insurance and mortgage insurance if the insured’s principal place of residence is Tasmania when the policy is issued.

The state funds its fire services through a levy on some insurance classes, a property charge collected by councils and a tax on motor vehicle registrations, excluding motorbikes.

The insurance levy is expected to collect $16.4 million this fiscal year, rising to $17.8 million next year and $18.4 million in 2016/17.

The property charge is forecast to raise $33.6 million this year, $34.9 million next and $40 million by 2016/17.

The vehicle component is expected to contribute $6.8 million in this and the next financial year, rising to $7.3 million in each of the next three years.

The Government has allocated $22 million for bushfire recovery this fiscal year and $8.3 million in the next, after fires hit the island last summer.