For anyone looking to lower the cost of either their personal or business insurance, the first port of call should be an insurance broker. Such professionals are able to provide access to cost-effective policies that protect individuals or companies against the most pressing risks..
However, a way that many in South Australia may be able to reduce the cost of their insurance is through a tax cut, should it come into play.
The SA government is reviewing its current insurance tax method of imposing an 11 per cent stamp duty on top of the 10 per cent GST.
CEO of the National Insurance Brokers’ Association (NIBA) Dallas Booth said the State Tax Review Discussion Paper does not come before time, and that such taxation methods already in place are ineffective.
“Insurance taxes directly affect the affordability of insurance. As such, they contribute directly to under‐insurance and non‐insurance across the community,” he explained.
“This is directly contrary to good social policy. Insurance is the main source of funds for restoration and recovery from natural and other disasters, and lack of comprehensive insurance cover results in real ongoing detriment to individuals, families and communities.”
In on the ACT
The ACT government has performed similar reforms in recent history, allowing companies to stretch their business insurance budgets further. The state has been gradually reducing stamp duty and has committed to remove it altogether by July 2016.
With NIBA saying that reform will help improve Australia’s gross domestic product (GDP), it might not be long until other states catch up.
However, if you need to find savings in your policy today – while not neglecting such important risk mitigation products as management liability insurance and business interruption cover – it is prudent to speak with your local insurance broker.
Contact MGA today and find ways to make savings possible, no matter which state you live in.