Media release – TCCI, TICT, THA, 22 May 2024
Business groups unite to call for action on insurance tax
Three of Tasmania’s peak business groups are joining forces and calling on the Government to act on its unfair insurance tax.
Businesses in Tasmania are facing massive increases in insurance premiums and to make matters worse, the Tasmanian Government imposes a ten per cent tax on most insurance policies.
When insurance costs go up, the Government gets a windfall.
“This is a massive issue for every business in Tasmania,” said TCCI CEO, Michael Bailey.
“Over the past ten years, the amount of money the Tasmanian Government has taken from its insurance tax has more than doubled. This financial year the Government is forecasting to collect nearly $140 million from its insurance tax, with that amount forecast to increase to more than $155 million per year over the forward estimates.
“This is nothing more than an unfair tax on businesses at a time when they can least afford it.”
TICT CEO, Amy Hills, said the cost of insurance was having an impact on the tourism industry.
“The cost of doing business in Tasmania is skyrocketing and insurance costs are one of the biggest concerns of my members. The fact that the Government is riding this wave of price increases is extremely unfair.
“I am concerned that as a result of the increasing cost of insurance, we risk losing the very product which gives Tasmania its competitive advantage and we can’t sit back and let that happen.”
THA CEO, Steve Old, said that he’s getting calls every day from members who are staggered by the rising cost of insurance.
“I’m sure the Government will say it’s only a small amount for businesses to pay on top of their insurance premium, but all up it’s over $130 million a year and it comes on top of increasing power prices, water and sewerage costs, rates bills and increasing wholesale costs for everything our members sell.
“Many businesses are right on the brink and the Government needs to look at what it’s charging businesses and whether or not that’s sustainable into the long-term.”
TCCI CEO, Michael Bailey, said it was worth remembering that at the same time insurance tax has doubled, the number of public servants has increased by more than thirty per cent, with the number of people employed in the Department of Premier and Cabinet alone increasing by 55 per cent.*
“Perhaps the Government should look at how it spends its money before it puts its hands in the pockets of Tasmanian businesses.”
