Victoria’s State Revenue Office (SRO) issued a draft revenue ruling for public consultation concerning the duty (tax) obligations on business insurance premiums.
The consultation is set to conclude on 25 September 2024.
Under the Duties Act 2000 (the Act), duty on the amount of premium paid in relation to a contract of insurance that affects general insurance, including business insurance.
With effect from 1 July 2024, the SRO has announced duty on business insurance premiums will be progressively abolished over 10 years by reducing the rate of duty (previously 10%) by 1% each year. This ruling provides guidance on the application of the amended provisions in the Duties Act 2000 and the duty payable on business insurance premiums.
The purpose of this ruling is to provide guidance on what business insurance is as well as the circumstances where the reduced rate of duty will apply to business insurance from 1 July 2024.
The draft ruling aims to offer clarity on applying the revised provisions of the state’s Duties Act 2000.
