Key Issues

Access to general insurance is fundamental to economic security, business continuity, and community resilience. Yet for many Australians, particularly those in high-risk or regional areas, insurance is becoming increasingly unaffordable or unavailable.

NIBA advocates for long-term policy solutions that promote affordability, enhance market participation, and ensure fair access to cover for all Australians.

Insurance based taxes

One of the most significant and persistent barriers to affordability is the high level of state and territory taxes imposed on general insurance products. These include:

• Stamp duties on insurance premiums;
• Emergency services levies (notably in New South Wales and Tasmania); and
• Other statutory charges imposed at point of purchase.

The taxes compound the cost of insurance, particularly for small business and households, and act as a disincentive to adequate cover. In some cases, they can account for up to 70% of the total premium, effectively penalising those who seek to manage their risk responsibly and leading to higher rates of underinsurance and non-insurance.

NIBA continues to call for comprehensive tax reform that removes or reduces insurance-based taxes and replaces them with fairer, more sustainable funding models for public services. Doing so would not only improve affordability but also increase overall levels of insurance within the community.

NIBA’s Advocacy Focus

To improve affordability and accessibility, NIBA advocates for:

• Reform of insurance-based taxes to reduce the cost burden on consumers and businesses;
• Policy settings that support competitive, well-functioning insurance markets; and
• Greater investment in disaster mitigation and climate resilience to reduce underlying risk.

By addressing both the structural and policy barriers to insurance affordability, we can ensure that all Australians are able to access the protection they need to recover, rebuild and thrive.