Insurance duty
Chapter 8 of the Duties Act 2001 charges insurance duty on contracts of general insurance, life insurance and accident insurance.
A general insurer or life insurer must not carry on business in Queensland unless registered under Chapter 12 Part 1 of the Duties Act to carry on the business.
Self assessments of insurance duty are generally required to be completed on a monthly basis. For more information on when self assessments are due, please contact our Client Contact Centre on 1300 300 734.
Insurance duty rates can be found on the rates of duty page of this website
Insurance duty is charged on:
- general insurance - premiums for the insurance
- life insurance - premiums for the insurance or the sum insured, depending on the type of the insurance
- accident insurance - net premiums charged for the insurance.
A 'premium' for general insurance or life insurance is the total consideration given to a general insurer or life insurer by or for the insured person to effect the insurance, without deductions for any amounts paid or payable, allowed or allowable, by way of commission or discount to an insurance intermediary.
However, a premium does not include:
- an amount paid to an insurance intermediary by the insured person as a fee under a contract between the insured person and the intermediary if the amount can be clearly identified as a fee
- an amount of duty under the Duties Act or a corresponding Act.
It is immaterial where the amount is paid or where the insurance is effected.
Types of insurance
Class 1 general insurance includes:
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building and contents cover
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public liability
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marine liability
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crop insurance
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stand-alone trauma and disability insurance
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travel insurance (other than insurance for a person's personal injury relating to that person's travel on an aircraft).
Class 2 general insurance:
Class 2 general insurance means general insurance for, or relating to, any of the following:
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professional indemnity
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personal injury to a person relating to the person's travel on an aircraft
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a motor vehicle, other than CTP insurance
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a home mortgage that is a first mortgage
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a life insurance rider.
Compulsory third party insurance
Accident insurance:
'Accident insurance' is accident insurance under the WorkCover Queensland Act 1996.
Life insurance:
Life insurance is insurance applying to a life or lives, or any event or contingency relating to or depending on a life or lives, of a person or persons whose place of residence is in Queensland when the policy effecting the insurance is issued.
Transfers of life policies are not dutiable, as they are not dutiable property under the Duties Act.
Exemptions from insurance duty
Marine insurance - duty is not imposed on a contract of insurance for the physical loss or damage to the hull of a boat used primarily for commercial purposes.
Goods in transit insurance - duty is not imposed on a contract of insurance for the physical loss or damage to goods in transit or for the loss of freight of goods in transit.
Health insurance - duty is not imposed on a contract of insurance entered into in the course of an insurer’s heath insurance business as defined under the section 67 National Health Act 1953 (Cwlth).
Reinsurance - duty is not imposed on a contract of reinsurance between one insurer and another insurer.
Apportionment of premiums
Premiums for a contract of general insurance that insures either or both of the following may be apportioned:
- property in Queensland as well as property in another State
- a risk, contingency or event about an act or omission that in the normal course of events may happen wholly or partly in Queensland as well as wholly or partly in another State.
Apportionment also applies to a contract of life insurance that insures lives, or any event or contingency relating to or depending on lives, of persons resident in Australia, at least one of whom has a place of residence in Queensland when the policy effecting the insurance is issued.
A regulation may state how premiums for insurance are to be apportioned. A premium or part of a premium must be apportioned under the regulation. However, the Office of State Revenue may, on the written application of an insurer or an insured person, apportion a premium or part of a premium on another basis if the Office of State Revenue is satisfied the apportionment would result in less insurance duty being paid.
