The New South Wales Labor Government today delivered a slap in the face to insurance reforms aimed at making policies more affordable for individuals and businesses.
The state stamp duty collected on insurance will today rise from 5% to 9%, increasing the cost of insurance cover for New South Wales residents. Householders will pay an extra $50 a year for typical home and contents cover, while small business will pay an extra $114 a year on a typical base premium of $2,000 for property insurance.
"This is particularly punishing for anyone operating a small business such as hairdressers, butchers and mechanics who will be slugged at home and at work – resulting in an extra $165 a year for combined home/contents and property insurance," Federal Assistant Treasurer, Mal Brough, said today.
Following the HIH collapse and spiralling insurance costs, the Commonwealth and State Governments worked together to introduce reforms to make insurance more affordable and accessible.
"This is a greedy Labor Government increasing what is already a tax on a tax, and undermining the positive work to put downward pressure on insurance premiums through sensible reforms.
"New Premier Morris Iemma is walking in the footsteps of his predecessor, double taxing his residents and showing that Labor can't be trusted when it comes to budget management."