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Insurance duty

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General and life insurers must be registered by law.

See Insurance duty rates. 

Insurance duty is charged on:

  • general insurance
  • life insurance
  • accident insurance.

Types of insurance

General insurance (Class 1) includes

General insurance (Class 2)

 Compulsory third party insurance Accident insurance Life insurance

Building and contents cover

Professional indemnity

A policy of insurance under the Motor Accident Insurance Act 1994

As defined in the Worker's Compensation and Rehabilitation Act 2003

Applies to the life, or an event relating to the life, of a person living in Queensland when the policy is issued
Public liability Personal injury due to the person's travel on an aircraft    
Marine liability Motor vehicle, other than CTP insurance      
Crop insurance A home mortgage that is a first mortgage      

Stand-alone trauma and disability insurance

Life insurance rider

      

Travel insurance (other than insurance for a person's injury relating to that person's travel on an aircraft)

        

Exemptions from insurance duty

The following types of insurance are exempt from insurance duty:

  • Marine—insurance for the physical loss or damage to the hull of a boat used mainly for commercial purposes
  • Goods in transit—insurance for the physical loss or damage to, or loss of freight of, goods in transit
  • Health—insurance entered into in the course of an insurer’s health insurance business
  • Reinsurance between one insurer and another insurer.

Apportionment of premiums

Premiums for a contract of general insurance for one of the following may be apportioned:

  • property in both Queensland and another state
  • something that in the normal course of events may happen wholly or partly in Queensland.

Apportionment also applies to a contract of life insurance for people living in Australia, at least one of whom has a home in Queensland when the policy is issued.

A regulation may state how premiums are to be apportioned. We may, on written application, apportion a premium on another basis.

See apportionment of general insurance duty premiums for more information.

Top call centre questions

If a policy is cancelled mid-term, will insurance duty be refunded?

If an insurance policy is cancelled, the insurer may refund all or some of the premiums. Any duty paid on refunded premiums for general or life insurance policies may be returned. (Section 370 of the Duties Act 2001.)
As the insurer has received the duty from the policyholder, the refund of duty must be passed on to the policyholder. (Section 39 of the Taxation Administration Act 2001.)

Do registered exempt institutions pay duty on WorkCover policies?

Yes, under the Duties Act 2001 there are no exemptions from insurance duty on policies under the Worker's Compensation and Rehabilitation Act 2003.

What insurance policies do refunds apply to?

Refunds apply to general insurance and life insurance policies that started or were renewed on or after 1 March 2002.

For trailer insurance, what is the rate of duty?

The rate of duty for trailer insurance depends on the type of cover.

If the trailer is covered only when attached to a motor vehicle, the rate is 5% of the premium.

If the trailer is also covered when not attached to a motor vehicle, the rate is 7.5% of the premium.

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Last reviewed 30 September 2009

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