Insurance duty

Premiums

Insurance duty is calculated on the premium paid to establish insurance. Generally, the insurer must pay the insurance duty.

A premium is the total amount paid to an insurer for insurance.

It may include a fire service levy, an emergency service levy and GST. It doesn't include a fee paid to an intermediary or any amount of duty.

A premium is paid when it’s received by the insurer, broker or agent.

If a premium is paid to someone who’s not a registered insurer, it’s the same as if paid to a registered insurer. Insurance duty is still payable on that premium, and the insured person must pay the duty.

Premium refunds

If a premium is refunded, the insurer can apply to us for a refund of the duty. Alternatively, they can apply for an offset against future liabilities.

If you’re the insured person, contact the insurer for a refund of the duty.

Insurers

An insurer is a general insurer or a life insurer. Learn about the types of insurance offered.

Keeping records

As an insurer or insurance intermediary, you must keep the following records for five years:

• member and policy level data
• the nature and location of the property insured
• the nature and location of each risk, contingency or event insured
• the premiums paid in relation to each contract of insurance
• anything that supports your duty calculations.

We may request these records for audit and assessment purposes.

Audit survey

If you are involved in an audit, you will receive a post-audit survey via email after it has been completed. The email will contain a ‘Take the Survey’ link. Please provide us with your candid feedback so we can continually improve our audit process and address any issues you experienced during the audit.

Applicable legislation

• Duties Act 1997
• Taxation Administration Act 1996
• Insurance Act 1973
• Life Insurance Act 1995

Related links

• State Insurance Regulatory Authority (SIRA)
• Insurance Council of Australia
• Australian Prudential Regulation Authority