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Insurance duty—apportionment of premiums

Insurance duty (in relation to a contract of insurance that effects general insurance) is charged on the amount of the premium paid. General insurance is defined by reference to property in Queensland and risks in Queensland.

General insurers must apportion all premiums paid on insurance contracts that relate to the following:

  • property that at the time of insurance is located in Queensland and in another Australian jurisdiction
  • a risk concerning an act or omission that within the normal course of events may occur within, or partially within, Queensland and in another Australian jurisdiction.

Where applicable, these premiums should be apportioned as set out in the Schedule of Apportionment. The schedule was developed in consultation with the Insurance Council of Australia and the commissioners of the other Australian jurisdictions. It has operated since 1 July 2008, and is contained in Schedule 2 of the Duties Regulation 2002.

We may, on written application by the insurer or insured person, apportion a premium on another basis.

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 charitable 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 19 March 2012

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