Rates of duty

The rates of general and life insurance are:

The rate of duty for general insurance is 10% of the premium paid including commission payments, intermediary discounts, GST, terrorism levy and fire service levy.

This rate came into effect on 1 October 2012. The previous rate was 8%.

Life insurance policy (other than a temporary or term insurance policy, or a mortgage insurance policy) duty is based on the sum insured.

Sum Insured	Rate of Duty
$0 - $2,000	10 cents per $200, or part thereof, of the sum insured
Over $2,000	$1 plus 20 cents per $200, or part thereof, of the sum insured that exceeds $2,000

Temporary or Term Insurance policy - duty is 5% of the first year's premium including GST.

Mortgage Insurance policy - duty is 2% of the premium including GST.

 Annuity - $50 is chargeable on an annuity. A contract is an annuity if:

it provides for the periodic payment of money to the annuitant in fee for life or for a specified term of years as an annual or more frequent entitlement;

the periodic payment is a sum certain expressed as a dollar amount (may be varied according to a predetermined formula);
the periodic payments are solely from the contract and comprise income and not the repayment of capital.

All other annuities would attract ad valorem duty as a life insurance policy.

Apportionment of insurance duty

Liability for duty may be apportioned between Tasmania and other jurisdictions where property, risk or residency of the insured person (for life insurance) is located in more than one jurisdiction.

A schedule of apportionment may be developed in consultation with any person the Commissioner considers suitable.

Revenue ruling PUB-DT-2019-1 Insurance Duty – Apportionment of premiums between Australian jurisdictions contains the insurance apportionment schedule developed in consultation with the Insurance Council of Australia.

The Act also provides that premiums must be apportioned between general, life and exempt insurance.

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