Hon. Alanna Clohesy questions the Treasurer regarding insurance duty within the proposed no-fault catastrophic injury cover and the existing CTP scheme. The Treasurer provides some figures but cites cabinet confidentiality for one answer.

AnsweredQoN 453Legislative Council
Asked
5 May 2015
Portfolio
minister representing the Treasurer

QuestionView source ↗

THIRD
PARTY INSURANCE — NO-FAULT CATASTROPHIC INJURY COVER
453. Hon ALANNA CLOHESY to the
minister representing the Treasurer:
I refer to the
government's green paper on options to add no-fault catastrophic injury
cover to Western Australia's compulsory third party insurance scheme.
(1) Do the costings of option 2 and option 3
include insurance duty?
(2) If yes to (1) —
(a) what amount of insurance duty is
included in these costings; and
(b) what is the estimated total amount of
duty that will be collected through a no-fault insurance scheme?
(3) Is insurance duty collected as part of
the current compulsory third party insurance scheme?
(4) If yes to (3) —
(a) what amount of insurance duty is
charged; and
(b) what is the estimated total amount of
insurance duty to be collected in 2014–15 and 2015–16?

AnswerView source ↗

I thank the member for some notice of this question.
(1) Yes.
(2) (a) Insurance
duty is 10 per cent of the GST inclusive premium amount for no-fault
catastrophic compulsory third party—CTP—premiums.
(b) This information is cabinet
in-confidence.
(3) Yes; insurance duty is collected on insurance products in
Western Australia.
(4) (a) Insurance
duty is 10 per cent of the GST inclusive premium amount for the current CTP
scheme.
(b) The
estimated amount of insurance duty on the current CTP scheme is $59 million for
2014–15 and $63 million for 2015–16.

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