It seems to be all about taxes in NSW.
I start with the good news. I applaud the NSW Government for removing the dumping fees on asbestos waste (of up to a quarter of a tonne) in an effort to reduce the level of illegal dumping.
LMI have become involved in a number of claims where innocent people have been left with massive clean up costs when they have been the victim of fly tipping. (illegal dumping).
Hopefully it will also reduce the high cost of removal of debris after fire and storm losses in New South Wales.
It is good for government to understand the basic principles of economics when it comes to supply and demand.
Having worked out that if you price something too high people are reluctant to purchase when it comes to dumping charges, I wish they would understand the same applies to the cost of insurance.
At a time of high bush fires and the potential of cyclones coming all the way down to NSW to tax insurance so high that people are walking away from it is bad not only for the individuals but also the community and the economy of NSW. When people are not fully insured they turn to the government for support. Would it not be better for the government to encourage people to be self sufficient and insure? Other forms of insurance are often given tax relief, but not general insurance that protects our homes and businesses. It also adds to the cost of construction.
We all know the government could reduce cost themselves by dumping the insurance monitor who only focuses on the price of insurance and not the level of protection, and of course ignores the high level of insurance taxes. The cost to the community and to policy holders as reported recently in InsuranceNEWS is obscene. The whole thing really is a disgrace.
Also a disgrace, is the fact that the NSW Government is not disclosing the list of buildings with dangerous cladding. At a time where trust in government has never been lower and we are all looking for transparency, not to publish the list does not make sense from a public protection point of view.
The cynic in me thinks it probably all comes back to taxes, the theme of today’s post. If the blocks of unit are published then the price of the units fall and then the NSW grab through land tax and stamp duty will fall.
Can you think of any other logical reason why the list is not published?