Insurance duty rates

Insurance duty is charged on the premium (the total amount paid to the insurance company for the insurance) and GST, which is considered part of the premium.

Different rates apply based on the type of insurance the premium is paid for.

General insurance

The insurance duty rate for both class 1 and class 2 general insurance is 9% of the premium paid (including GST).

Class 1 general insurance is general insurance other than compulsory third party (CTP) or class 2 general insurance.

Class 2 general insurance is general insurance for, or relating to:

  • professional indemnity
  • a motor vehicle (other than CTP insurance)
  • a first home mortgage
  • personal injury relating to aircraft travel
  • a life insurance rider.

A life insurance rider is attached to a life insurance policy and provides for additional capital payments if the insured person becomes disabled or accidentally dies. All or part of the premium for the rider must be stated separately on the policy.

CTP insurance

Insurance duty of 10c is imposed on a premium for CTP insurance.

Life insurance

The insurance duty on a contract of temporary or term life insurance is 5% of the first year's premium.

On another contract of life insurance, the duty is calculated as follows:

  • for a sum insured up to $2,000 - 0.05% of the sum insured
  • for a sum insured over $2,000
    • 0.05% of the first $2,000
      and
    • 0.1% of the balance of the sum insured.

Accident insurance

Insurance duty on WorkCover policies is 5% of the net premium.

Also consider...

Contact

Office of State Revenue

  • Call 1300 300 734 (Australia) or
    +61 7 3179 2500 (overseas)
  • Send an email using our online enquiry form.