Nick Dametto and Townsville Chamber of Commerce’s Heidi Turner call for end of insurance double tax
A North Queensland MP is pushing for the government to abolish insurance stamp duty to provide relief for those doing it tough with cost-of-living pressures in the wake of the recent floods.
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A North Queensland MP has spoken in parliament, pushing for the government to abolish insurance stamp duty to provide relief for those doing it tough with cost-of-living pressures in the wake of the recent floods.
Backing up Hinchinbrook MP Nick Dametto’s sentiments, Townsville Chamber of Commerce CEO Heidi Turner said North Australian businesses are being “crippled” by skyrocketing premiums and a lack of coverage.
“To live and operate businesses we have to have insurance, but for years in the north we have been facing skyrocketing premiums and policy exclusions that make it impossible for many to secure affordable coverage, making disaster recovery even harder,” she said.
“This is a market failure in insurance, and it requires urgent government intervention.”
During a debate on Thursday, Nick Dametto told parliament Queenslanders were being “unfairly slugged” by having to pay both stamp duty and GST on their insurance policies, which he said would see premiums soar and increase underinsurance rates.
“In the wake of the recent devastating floods in North Queensland and across the Hinchinbrook electorate, the realisation is quickly becoming clear of just how many people in North Queensland are uninsured and vulnerable to these events,” he said.
The Townsville Chamber of Commerce has drafted a federal budget submission named Insurance: The Market Failure of an Essential Service, which is supported by 20 Chambers of Commerce across Northern Queensland and Western Australia.
The submission outlines six recommendations to be considered for the 2025-26 budget to “fix the crisis” including the removal of stamp duty and GST and ensure insurers cover all of Australia, not just in the low-risk areas.
It states insurance is not a luxury but an “essential” for business.
The submission is the third by the Chamber in relation to the effect of unaffordable insurance in northern Australia, the first of which was submitted in January 2021 which saw the Federal Government announce the Reinsurance Pool for Cyclone and Flood Related Damage in July 2022.
The conclusion of the report states it is “imperative” in the upcoming budget that provisions must be made in relation to creating a competitive and sustainable insurance market in Australia.
“We have to create affordable and accessible insurance options,” Ms Turner said.
“Without action, we will continue to see businesses forced to close or not reopen after a disaster. Jobs will be lost and the community will be left vulnerable.”
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Originally published as Nick Dametto and Townsville Chamber of Commerce’s Heidi Turner call for end of insurance double tax
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