Department of Treasury and Finance logo

Department of Treasury and Finance
Overview - Insurance Duty
 
Options

Duty is charged on General Insurance and Life Insurance.

Duty payable is a percentage of:

  • the premium paid in relation to contracts of General insurance,
  • the sum insured by a Life insurance policy,
  • the first years premium of a Temporary or Term insurance policy, and
  • the premium paid on a Mortgage insurance policy

Duty on an Annuity is $20, if it complies with subsection 174(6) Duties Act 2001 External Link icon.

The Insurance Duty Calculator has duty rates and can estimate your liability.

Responsibility to pay


The liability to pay duty rests with the insurer, only if they are registered.

Otherwise, the insured person is liable to pay the duty.

In most cases the insurance company or broker will arrange payment of duty. However, responsibility lies with the insured person to confirm this is the case.

If neither the insurer nor broker pays the duty, the insured person must pay the insurance duty and lodge a one-off return.

Registration


All Australian insurance businesses that cover a Tasmanian risk must apply to be registered.

To register, complete the appropriate form and lodge it at the State Revenue Office
The definition of an authorised and non-authorised insurer is drawn from the Commonwealth Insurance Act 1973 .

As part of registration a Tasmanian Revenue Online (TRO) account will be created for duty returns to be lodged and paid electronically.

Making One-off Returns


If the insurer or broker doesn’t pay the duty associated with an insurance policy, the insured person is required to lodge a one-off return and pay the duty.

Complete either the General Insurance Return PDF documents or Life Insurance Return PDF document and lodge the form, including payment, with the State Revenue Office.

Forms and payment can be lodged:
  • in person at Level 3, 80 Elizabeth Street, Hobart (9am - 4pm weekdays), or
  • by mail (cheque made payable to Commissioner of State Revenue) to GPO Box 1374, Hobart TAS 7001

Return Deadlines


Returns must be lodged and paid by the 21st day of the month for premiums received or paid, or life insurance policies effected, in the preceding month.

Other Publications


Insurance Duty – Apportionment of premiums between Australian jurisdictions (PUB-DT-2008-06) PDF document

Duties Act 2001 - Information for the Insurance Industry

General Insurance Premiums and the Terrorism Insurance Act 2003

Exemption


Effective 1 July 2002, an exemption applies to:
  • insurance effected by a separate policy in a distinct sum against a claim for public liability;
  • insurance in a distinct sum against a claim for public liability included in a package of insurance other than in a domestic policy covering home or contents or both home and contents.

Other exemptions are specified in section 190 of the Duties Act 2001 External Link icon.

Sections