Govt urged to drop stamp duty tax from life insurance

Earlier this year, the FSC made a submission responding to the federal government’s tax white paper in which it called for the “abolition of inefficient state taxes”, including stamp duty on life insurance.

The FSC has once again made calls for stamp duties to be removed, this time appealing to the Council of Australian Governments (COAG).

FSC director of policy Andrew Bragg said inefficient taxes, such as stamp duty on life insurance, are costing Australia both investment and jobs.

“We understand Australia’s tax system cannot be recalibrated without federal reform,” he said.

“The reform malaise has forced the states to rely on a boondoggle of inefficient stamp duties. The states collect just $375 million on life insurance duties which cost over $85 million to collect.”

“COAG must develop serious proposals for tax reform for Australia to remain a prosperous and competitive country. A mandate for structural tax and federal reform should be sought in 2016,” Mr Bragg said.