Treasury officials have revealed that no assessment was done on the likely impact of the LNP’s massive insurance tax hikes, which are likely to impact hard on regional Queenslanders affected by natural disasters.
Shadow Treasurer Curtis Pitt said it was clear the tax hike was a blatant money grab from Campbell Newman and the LNP.
“If you’re going to increase insurance taxes, you’d expect that the Government would look closely at how those tax hikes would discourage Queenslanders to take up insurance,” Mr Pitt said.
“Especially in regional Queensland, where premiums in some hard-hit areas have increased by 1000 per cent over the last two years, now this extra tax increase on top of that will make life even harder for Queensland families.
“In Treasury estimates yesterday, the Under-Treasurer admitted that no such work had been done.
“For a state that has copped plenty from Mother Nature in recent years, it’s a startling admission that reveals how little concern this Government has for the cost of living of Queenslanders, particularly those in regional areas.
“I have great concerns that rising premiums, compounded by the LNP callous tax increase, could lead to many Queenslanders opting out of insurance.
“When he was in Opposition, the now-Treasurer labelled insurance taxes a ‘windfall on misery’. Now in Government, he’s increased that windfall for himself, without caring about how it would affect Queenslanders already struggling under his Government’s huge cost of living increases.”
Mr PITT: Under Treasurer, with reference to page 57 of budget paper No. 4 where sets out increases to insurance duty—the Treasurer previously described it as a `windfall on misery’; I think that was one of the things said in this particular area—was any advice requested on potential impacts on the uptake of insurance in disaster affected areas and, if not, why not?
(Under-Treasurer) Ms Gluer: I do not actually believe that did form part of the assessment when it was done, and the main reason for that, Mr Pitt, is that the actual increase in insurance duty is such a small part of the actual premium and the actual premium increase in the areas that I think you are referring to was very significant compared to the stamp duty portion of that.