Taxation of Australian general insurance premiums is the highest in the world, according to a study released today by financial services group Deloitte Touche Tohmatsu.
Taxation of Australian general insurance premiums is the highest in the world, according to a study released today by financial services group Deloitte Touche Tohmatsu.
According to the study, taxes in Victoria, for example, are 4,200 per cent higher than those in Ireland; 1,680 per cent higher than in the United Kingdom; and 2,800 per cent higher than in Singapore. Deloitte labels the taxes on insurance as “the most unfair in the world”.
“The Insurance Council of Australia has found that 30 per cent of households and 20 per cent of businesses (mostly small businesses) no longer insure,” says Deloitte director Rod Hill.
“Affordability is a primary factor. The pre-GST figures on non-insurance and gross under-insurance in Australia (about 43 per cent of Australia’s population and 50 per cent of Australian businesses) should have run alarm bells.”
Hill says country Victorians pay 4,200 per cent more taxes on fire insurance premiums than the Irish, with Melburnians paying 3,550 per cent more.
The study of 10 countries by Deloitte found that France took out second place behind Australia but on fire insurance only, with France having a much lower rate on household insurance.
South Africa followed Australia as the second highest taxes on household insurance.
Deloitte says New South Wales claimed the title for the highest tax rate on household insurance at 46 per cent of consumers’ premiums.
