The Insurance Commission of WA will deliver a $30.4 million return to the state this year, a 45% increase, due to improved profitability and investment returns.

State Budget papers say the commission’s income tax equivalent, a payment to the state as a form of company tax, will increase even though the compulsory third party motor premium remains unchanged.

WA has not increased its insurance taxes and duties this year. The state’s Budget papers say stamp duty on insurance and compulsory third party motor are the nation’s lowest.

Total insurance taxes in WA are forecast to rise from an expected $472.4 million this financial year to $511.6 million in 2012/13 and $550.8 million in 2013/14.

The Budget papers show the State Treasury budgeted $80 million for the HIH Insurance rescue package in this financial year and has estimated $5 million will be needed in 2012/13.