Stamp Duty

Stamp duty on insurance is a state or territory government tax that is automatically added to your insurance premium. The rate varies depending on which state the risk is located in and the type of insurance.

It’s one of those line items on your insurance invoice that most people don’t think about. But it’s a real cost, and it adds up.

Why It Matters

• It increases your total cost of insurance beyond just the premium and broker fee.
• Rates differ between states and territories, so businesses operating across multiple states may see different charges.
• It applies to most types of general insurance, including business, property, motor, and liability policies.
• You can’t avoid it. It’s a government charge collected by the insurer on behalf of the state.

How It Varies by State

Stamp duty rates on general insurance vary across Australia. The rates can also differ by insurance type (for example, motor vs general). Some states have reformed or abolished stamp duty on certain insurance classes, while others still charge significant rates.

As a general guide:

• NSW - Up to 9% on general insurance, with some exemptions.
• VIC - 8% on business insurance (reducing 1% per year until abolished in 2033), 10% on personal insurance.
• QLD - Up to 9% on general insurance (some classes vary).
• SA - 11% on general insurance.
• WA - Up to 10% on general insurance.
• TAS - 10% on general insurance.
• ACT - Abolished on most general insurance from 2016.
• NT - 10% on general insurance.

These rates are approximate and can change. Always check your invoice or ask your broker for the exact amount.

Simple Examples

• Your business insurance premium is $5,000 in Victoria. At the current business insurance rate, stamp duty adds several hundred dollars to your total. Check with your broker for the exact amount.
• You have properties in NSW and Victoria. The stamp duty rate on each property’s insurance may differ.
• Your motor vehicle fleet is registered in South Australia. The stamp duty on your fleet policy is calculated at the SA rate.

Common Mistakes or Misunderstandings

• Thinking it’s a fee charged by the broker or insurer. Stamp duty is a government tax. The insurer just collects it.
• Not budgeting for it. When comparing quotes, make sure you’re comparing the total cost including stamp duty and GST, not just the base premium.
• Assuming it’s the same everywhere. Rates vary significantly between states.
• Confusing insurance stamp duty with property stamp duty. They’re separate taxes with different rates and rules.

When to Speak to a Broker

If you want to understand the full cost breakdown of your insurance, including stamp duty, GST, and broker fees, your broker can walk you through every line item on your invoice.

Need help?

If you have questions about stamp duty or any other charges on your insurance invoice, reach out to Tank Insurance and we’ll explain it clearly.

Related Terms

• Insurance Premium - Stamp duty is calculated as a percentage of your premium, so it increases as your premium goes up.
• Broker Fee - Together with stamp duty and GST, broker fees make up the total cost shown on your insurance invoice.
• Stamp Duty Exemption - Some states offer exemptions or are phasing out stamp duty on business insurance. Check if your business qualifies.