From: statements@qld.gov.au

Sent: Thursday, January 14, 2010 5:55 PM

To: mark@spaal.asn.au

Subject: Changes to Queensland's insurance duty legislation

Treasurer and Minister for Employment and Economic Development
The Honourable Andrew Fraser
14/01/2010

Changes to Queensland's insurance duty legislation

The state government will legislate to close insurance duty liability loopholes for insurance taken out with overseas insurers.

"Following a New South Wales Court of Appeal decision that saw a major company not have to pay insurance duty on contracts entered into with overseas-based insurers, the Queensland government will amend legislation to ensure that in future, duty is paid in similar circumstances," Treasurer Andrew Fraser said.

Contracts with Australian insurers attract the obligation and we will clarify the law to ensure liability cannot be escaped through using offshore insurers.

These changes will also incorporate certain in-house insurers.

Legislative changes will also clarify that life insurance riders and similar products are liable for insurance duty where those products are taken out with either a life insurer or a general insurer.

Mr Fraser said that in each case, these types of insurance arrangements were liable for duty under the Stamp Act 1894, and most insurers have continued to account for insurance relating to the aforementioned types of insurance.

"These changes bring Queensland insurance duty arrangements generally in line with the other States and make it clear when duty is payable so policy holders are treated consistently. "

The potential loopholes that are being exploited in the Duties Act 2001 will be closed in legislation that will be introduced early in the new year.

The changes will take effect from today.

Further information on insurance duty is available on the website of the Office of State Revenue: www.osr.qld.gov.au

Media contact: 3224 5982

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