Flood victims in Queensland will be hit with even higher insurance premiums under a Budget measure announced by the Newman Government today.
Premier Newman's decision to increase the insurance duty from 7 to 9 per cent will drive up insurance for Queensland families, particularly Queenslanders in North Queensland who have already been hit hard by steep rises in premiums.
This is despite the HIH Royal Commission, the Henry Review and the Johnson Report recommending that insurance duty be abolished, and the parliamentary Wake of Disasters report recommending that Queensland have a 12 month moratorium on insurance duty in the North of the State.
True to form, the Liberal National Party will hit those who can least afford it; Queensland families which have suffered through the floods and struggled with the complexity of insurance in recent years.
This is a slap in the face for Queensland families straight from the hand of the LNP Government and in complete contrast to the work of the Gillard Labor Government.
This tax hike on Queensland families is in stark contrast to the Gillard Labor Government's consistent efforts to not only increase flood insurance coverage but put downwards pressure on premiums by funding flood mitigation work.
The Gillard Labor Government is investing $100 million to reduce flood risk, including funding for Roma and Ipswich in Queensland, and bring about real reductions in insurance premiums.
That's because minimising damage from flood and other natural disasters is the only sustainable way to reduce insurance premiums over time.
The Gillard Government has delivered important, consumer focussed reforms in insurance including;
- Standard definition of 'flood' - something no other government has been able to achieve
- Key Facts Sheet - one page, in plain English, to save consumers from 20 pages of jargon and uncertainty
- Flood data portal - because more information means real choice for families looking to protect their homes
The Gillard Labor Government has been pleased to see flood coverage in insurance policies increase from three per cent to around 83 per cent.
The Gillard Government's plan has been widely welcomed by insurers and communities as a step forward for dealing with risks and lowering costs for consumers and business.
The Newman LNP Government has taken a retrograde step that will hurt Queensland families.