Soaring Insurance Premiums Challenge NSW Businesses

Daniel Hunter, CEO of Business NSW, highlighted the financial strain these rising costs are placing on companies. He pointed out that the state government collects substantial revenue through the emergency services levy and stamp duty on insurance, making NSW's insurance premiums the highest-taxed in mainland Australia. This financial burden forces businesses to either absorb the increased costs or risk operating without adequate insurance coverage.

The Insurance Council of Australia (ICA) has also weighed in, advocating for the removal of the emergency services levy. According to ICA, this levy, along with GST and stamp duty, adds an average of $305 to home and contents policies and $766 to commercial building and contents policies. The council argues that the levy disproportionately affects those least able to afford it and does not fairly reflect the potential need for emergency services.

In response to these concerns, the NSW government has committed to removing the levy and is consulting on transition arrangements and a replacement model. However, businesses are calling for more immediate action to address the unsustainable rise in insurance premiums and ensure that companies can operate with adequate protection against unforeseen events.