Victoria’s insurance taxes will increase by 10% this financial year, raising $1.61 billion, and decline marginally to a budgeted $1.6 billion in 2012/13.

The amount raised through the fire services levy will rise 18% to $641.9 million this year and then fall 9.6% to $580.5 million in 2012/13. (see other report)

The budget papers show the 10% stamp duty on general insurance premiums is expected to raise $809 million this financial year, rising to $860 million in 2012/13 due to strong growth in household insurance premiums, as well as commercial insurance revenue.

The documents say this reflects the impact of natural disasters on the global insurance industry, and a higher take-up due to subdued but ongoing economic growth.

Stamp duty on life insurance is expected to raise $4.1 million this year and $4.2 million in 2012/13.

The duty on third-party premiums is expected to raise $155.1 million this financial year and $161.1 million in 2012/13 due to an increase in the number of motor vehicles and indexation to inflation.