Shadow Minister Media Releases
NSW Liberal/Nationals Warn Of Insurance Increases In NSW (25/06/2009)
Business owners and residents of NSW should be preparing themselves for increases to their insurance premiums from early July thanks to the NSW Labor Government, warned the Shadow Minister for Small Business, Don Page.
Mr Page said the NSW Government would be charging insurance companies an Emergency Services levy from the 1 July 2009 which will be used to raise $39-million annually to fund the State Emergency Service.
“Of the cost of insurance premiums in NSW currently 38% is Government (mainly State) taxes and the introduction of the new Emergency Services levy will see those taxes increase again,” said Mr Page.
“That new levy will be on top of a Fire Services levy which funds metropolitan and rural fire services, GST and NSW stamp duty,” he said.
“The NSW government says the levy is to be paid by insurance companies but this fee will no doubt be passed onto customers,” he said.
“Whilst I strongly support the State Emergency Service, and made a speech this month in the NSW Parliament commending their magnificent efforts in the recent storms, winds and floods, funding them should not be left to only those who take out insurance.
“The NSW Government needs to urgently review the high levels of tax on insurance premiums because policies are becoming so expensive that more people are taking the risk of not having any insurance at all.
“In the recent Victorian bushfires 30% of householders who lost their homes didn’t have insurance. Why?
“Because Victoria has the highest insurance premiums in the world, closely followed by NSW.
“When premiums are high people often find themselves unable to pay for insurance,” Mr Page said.
“There is no need for insurance premiums to be so high in NSW given 38% of charges are the result of Government taxes,” he said.
“We have the ridiculous situation where the Government is imposing a tax on a tax on a tax on a tax whereby there is a base premium and then 19% of that premium is added as part of the Fire Services levy.
“The total of those figures is then used to calculate GST which is then included for the calculation of stamp duty,” Mr Page said.
“There is clearly a need for the Government to review the way it funds the SES and fire services.
“There is also an equity issue. Why should those who take out insurance bear the full burden of funding the SES and Fire Services when those who don’t insure pay nothing whilst still being able to access help?
“This new tax on insurance premiums is a blow to individuals and families as well as small business owners.
“We need to ensure that insurance premiums are affordable so that in the event of an accident, flood, fire or disaster, people are secure knowing they will be able to rebuild their lives,” Mr Page said.
