A WA MP raises concerns about significant insurance premium increases for strata titles in the North West due to Queensland cyclones and asks the Treasurer to waive state government duty on these premiums to encourage investment and address affordable housing. The Treasurer acknowledges the issue but doesn't commit to the specific solution, highlighting other initiatives.

AnsweredQoN 7013Legislative Assembly
Asked
30 November 2011
Portfolio
Treasurer

QuestionView source ↗

With reference to recent spikes in insurance renewals for Strata Titles above the 26
th
parallel as a result of last year’s Queensland cyclone events, I ask;
(a) is the Minister aware that a majority of insurance companies have increased premiums for Strata properties above a value of $5 million in the North West by 800 per cent to 900 per cent; and
(b) considering the flow on effect this will have on rent prices in the North West, will the Minister take immediate steps to secure the waiving of the extra costs associated with Western Australian State Government Duty for the extra cost of insurance premiums on these Strata Title properties as an incentive to further and continued investment in the North West, where affordable housing remains at a premium, and if not, why not?

AnswerView source ↗

Answered
20 February 2012
Responded by
Minister representing the Minister for Treasurer
Response time
82 days
(a) I am generally aware of large insurance premium increases on the back of recent natural disasters, including in the North West.
(b) It is by no means clear that insurance duty relief would be an effective or appropriate response by the State Government. However, the State Government is engaged in the Commonwealth's consultation process on the recommendations of its recent independently-conducted Natural Disaster Insurance Review, which among other things focussed on the ability of private insurance markets to offer adequate and affordable insurance cover for floods and other natural disasters.
The State Government is also undertaking a range of initiatives to improve housing affordability throughout the State, including in the North West. These initiatives include the Pilbara Cities project. More generally, it is negotiating with the Commonwealth to secure the retention by Western Australia of a fairer share of the benefits of economic activity in the North West, including through the GST Distribution Review.
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