Our politicians are so out of touch!
It was reported last week that Assistant Treasurer Mr Sukkar (Liberal) called on the State Government in Queensland (Labor) for the removal of stamp duty on insurance in North Queensland.
When asked the appropriate question as to whether he would ask the New South Wales government (Liberal) to do the same he said that it was not such an issue in that state.
First up, if the Assistant Treasurer was genuine he could better by having the Federal Government remove GST on insurance in Northern Australia. It would not necessarily help business, but for home owners it would be a significant saving.
Secondly, not only does NSW have Stamp Duty, it also has an Emergency Services Levy, which GST and Stamp Duty are both payable on.
It is a huge tax grab. In the financial year 2018-19, insurers were required to contribute $785 million towards the funding of the fire and emergency services in NSW.
Stamp duty on this plus the GST brings the amount collected by way of Emergency Services Levy in NSW on the Emergency Services Levy alone (not the premium or terrorism levy component) to $949.85 million.
I believe that the level of taxation on insurance is causing people not to purchase insurance at all or at least not to insure fully.
If increasing prices did not cause people to buy less, then why the call to stop discounting lollies and sugary drinks? Why tax tobacco and alcohol? All of these initiatives I fully support, however, insurance protects our community and economy, not harm it like these products.
In return, the New South Wales state government has made a grant of a mere $50 million.
We need to take politics and cheap grandstanding out of this issue and just use common sense.
Of course we should be removing ALL taxes on insurance to protect home and business owners, our communities, and the economy.
Mr Sukkar should be having a close look at what the Federal Government can do by way of risk mitigation in Northern Australia, bush fire and flood zones everywhere and doing their bit by removing GST on insurance.