Charges, Taxes, and Levies that may be applied to Home and Contents Insurance policies
The charges, taxes, and levies associated with home and contents insurance policies in New South Wales can vary depending on several factors, including the insurance provider, the specific policy, and changes in government regulations. These charges can change over time due to regulatory changes and company policies.
Here are some of the several charges, taxes, and levies that may be applied to home and contents insurance policies:
Goods and Services Tax (GST): A 10% Goods and Services Tax (GST) is applicable to the premium for Home and Contents insurance policies. This is a federal tax applied to most goods and services in Australia.
Stamp Duty: Stamp duty is a state tax that is applicable to Home and Contents insurance policies in NSW. The NSW Insurance Stamp Duty is a tax on insurance transactions. Stamp duty is collected by the insurer when your policy renews, or you pay your first premium.
The amount of stamp duty payable depends on the type of insurance product, and ranges between 2.5% and 9% of your insurance premium. You can find out more about the NSW Insurance Stamp Duty on the NSW Government Revenue website.
Fire Services Levy (FSL): In the past, the FSL was a separate levy in NSW used to fund fire services. However, as of July 1, 2017, the FSL was replaced by the Emergency Services Levy (ESL). The ESL is now collected as a part of your property’s council rates, so it is no longer included in your insurance premiums.
Emergency Services Levy (ESL): The Emergency Services Levy is also included in the base premium for Home and Contents insurance. It is used to fund emergency services in NSW.
Terrorism Insurance Levy: This levy may be applied to some insurance policies to cover the cost of providing insurance coverage for acts of terrorism.
Other Fees and Charges: Insurance providers may also charge various administrative fees and policy-specific charges. These can include policy setup fees, cancellation fees, and fees for making changes to your policy.
It’s important to keep in mind that tax and levy rates may change over time due to government policies and budget decisions. Therefore, it’s advisable to check with your insurance provider or the New South Wales government’s official website for the most up-to-date information on charges, taxes, and levies applicable to Home and Contents insurance policies in NSW.
Additionally, consult with a qualified insurance broker for personalised advice and to understand how these charges may affect your specific insurance policy.
Contact ARMA Insurance Brokers now for us to guide you with your Home and Contents insurance needs.