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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 below. This new schedule was developed in consultation with the Insurance Council of Australia and the commissioners of the other Australian jurisdictions. It has been introduced by an administrative arrangement and takes effect from 1 July 2008.

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

Schedule of Apportionment

The way that premiums are apportioned depends on the type of insurance.

Choose a tab below to find out how to apportion different types of insurance premiums. 

A–C

Class of insurance Way apportioned
Aviation non-ownership liability State in which person lives

Aviation hull, aviation hull third party property liability and aviation hull personal liability

(a) High-capacity regular public transport aircraft—number of actual take-offs and landings in the previous year in each jurisdiction of all aircraft covered by the policy (whether operated by the insured or a subsidiary)

Note: For the purposes of this Schedule, high-capacity regular public transport aircraft means a regular public transport aircraft whose certificate type approval permits the aircraft to have a maximum seating capacity of more than 38 seats or carry a maximum pay load of more than 4200 kilograms.

This definition is contained in regulations made under the Civil Aviation Act 1988 (Statutory Rule 294 of 1994).

(b) Another aircraft—jurisdiction of usual hangering of the insured property or location of the insured property (whether operated by the insured or a subsidiary)
Bankers blanket policy According to the individual policy types outlined in this schedule
Blood stock Place of (usual) location of the asset
Boiler explosion Asset value/sum insured or exposure level for each jurisdiction
Burglary Asset value/sum insured or exposure level for each jurisdition
Business interruption Reasonably estimated profit revenue, fees, rent or other business measurement factor
Care, custody and control of blood stock Place of (usual) location of the asset
Cash in transit Number of premises. Asset value/sum insured or exposure level for each jurisdiction
Company reimbursement Salaries and wages, number of people/employees
Comprehensive crime policy Salaries and wages, number of people/employees
Contract works Asset value/sum insured or exposure level for each jurisdiction
Contractor risks Asset value/sum insured or exposure level for each jurisdiction
Crop Asset value/sum insured or exposure level for each jurisdiction

D–L

Class of insurance  Way apportioned
Deterioration of stock Asset value/sum insured or exposure level for each jurisdiction

Directors and officers liability

Turnover or sales or number of people

Disability

(a) Single—place of residence of the insured/place of registration of business

(b) Group—place of registration of business/place of residence of the insured
Fidelity guarantee Salaries and wages or number of people
Fire Asset value/sum insured or exposure level for each jurisdiction
General property Asset value/sum insured or exposure level for each jurisdiction
Home building and contents Asset value/sum insured or exposure level for each jurisdiction
Industrial special risk

(a) Section 1—property—asset value/sum insured or exposure level for each jurisdiction

(b) Section 2—consequential loss—reasonably estimated profit revenue, fees, rent or other business measurement factor 
Legal expense insurance Salaries and wages or number or people
Livestock Place of (usual) location of asset
Loss of profits Reasonably estimated profit revenue, fees, rent or other business measurement factor

M–O

Class of insurance Way apportioned
Machinery breakdown (including computers and engineering) Asset value/sum insured or limit of liability declared in each jurisdiction

Marine

 

(a) Builder's risk—asset value/sum insured or exposure level for each jurisdiction

(b) Carrier's legal liability, charterer's liability and hull liabiliity—coastal and international shipping—predominant location

Note: The apportionment for coastal and international shipping is determined, based on the ‘predominant location’ of the vessel as defined below:
(a) On the basis that most vessels will operate from their port of registration, the predominant location should be taken to be that port, subject to (b)
(b) If it is disclosed to the insurer at the time the policy is commenced, effected or renewed that the vessel will operate out of another port for the majority of the insurance year, then that other port will be taken to be its predominant location for that insurance year. If a vessel is intended to operate out of a number of ports in an insurance year and none of those periods is for the majority of the year, the port of registration will be taken to be the predominant location for that insurance year.

(c) Private pleasure—place of registration or place of residence of the insured
Medical indemnity Subscriptions paid by persons in each state
Money Number of premises. Asset value/sum insured or exposure level for each jurisdiction
Mortgage insurance Location of the property secured. If the security consists of 2 or more properties that are located in different jurisdictions, the apportionment will be based on a value basis
Motor vehicle including extended warranty

(a) Commercial motor vehicle—place of registration or deemed registration

(b) Private use motor vehicle—normal place of garaging of the vehicle

(c) Federal interstate motor vehicle—place of registration or deemed registration

(d) Unregistered motor vehicle—place of (usual) location of asset—garaging
Non-appearance—entertainment industry Ticket sales in each state
Occupational—professional indemnity Salaries, wages, number of persons/employees. Estimated profit, fees, rent or revenue

P–Z

Class of insurance Way apportioned
Personal accident and illness

(a) Single—place of residence of the insured/place of registration of business

(b) Group—place of registration of business/place of residence of the insured
Personal liability State of registration of business or place of residence of the person insured
Personal property Asset value/sum insured or exposure level for each jurisdiction
Pluvius Asset value/sum insured or exposure level for each jurisdiction
Public liability, product liability, or broadform Salaries, wages, number of people/employees. Turnover or sales. Number of premises. Floor area units or rent by State of risk. Number of members of the organisation in each jurisdiction
Railway property or railway public liability Proportion of kilometres travelled by the rolling stock in each jurisdiction in the previous year
Sprinkler leakage Asset value/sum insured or exposure level for each jurisdiction
Strata unit Asset value/sum insured or exposure level for each jurisdiction
Title insurance Location of the property
Trade credit Turnover or sales
Travel

(a) Outbound from Australia including baggage—duty payable on 10% of the premium received. State of registration of business (where the insured is not a natural person) or place of residence of the person insured

Note: If an insurance company disagrees with this basis of apportionment, they may apply to us for apportionment on another basis. Where an insurance company apportions duty on some other basis, that method of apportionment must be applied consistently across all jurisdictions. (Section 366(3) of the Duties Act 2001 would apply to all other instances where an insurer disagrees with the method of apportionment.)

(b) Travel within Australia—place of residence of the person insured or state of registration of the business (where the insured is not a natural person)
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Last reviewed 10 November 2009

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