Queensland's Insurance Duty Revenue Set to Surpass $2 Billion

Currently, Queensland imposes a flat rate of 9% duty on premiums for general insurance products, including home, contents, and car insurance. As insurance premiums continue to rise, so too does the government's revenue from this duty. By 2028-29, the annual revenue from this tax is expected to reach $2.14 billion.

The Insurance Council of Australia (ICA) has criticized this tax, describing it as a "lazy" approach that unfairly penalizes individuals who responsibly secure insurance coverage. ICA Chief Executive Andrew Hall advocates for the removal of the tax or, at the very least, for the revenue to be allocated towards programs that enhance the resilience of Queensland homes against natural disasters.

For tradespeople operating in Queensland, this development has significant implications. The increase in insurance duties may lead to higher premiums for business-related insurance policies, including public liability and tool insurance. This escalation in costs can strain the financial resources of self-employed tradies and small business owners, making it more challenging to maintain comprehensive coverage.

To mitigate the impact of rising insurance costs, tradespeople should consider the following strategies:

• Review and Compare Policies: Regularly assess existing insurance policies and compare them with offerings from different providers to ensure optimal coverage at competitive rates.
• Implement Risk Management Practices: Adopt proactive measures to minimize potential risks, such as adhering to safety protocols and securing tools and equipment, which can lead to lower premiums.
• Seek Professional Advice: Consult with insurance brokers or advisors who specialize in trades insurance to identify tailored solutions that meet specific business needs.

Staying informed about changes in insurance taxation and industry trends is crucial for tradespeople to make informed decisions that protect their businesses and financial well-being.