Two year moratorium on stamp duty increases demanded

Strata Community Australia (Qld) urges the state government to introduce a two year moratorium on further increases in stamp duty insurance premiums to provide some relief for what it calls the desperate position facing the North Queensland strata and community title sector.

At the same time, SCA (Qld) says insurance companies should also provide some relief on premiums in affected regions.

The association says it is disappointed by premier Campbell Newman’s recent announcement that the government would not cut stamp duty charges on insurance premiums in North Queensland.

SCA president, Simon Barnard, said if a cut is not possible, the government should freeze any further rises for a two year period. The state government announced in last year’s budget an increase from 7.5 per cent to 9 per cent in stamp duty applicable on insurance premiums. “There is a strong case for a two year moratorium on further stamp duty increases,” Mr Barnard said.

“And let’s see that extended to insurance companies who may be considering to increase their premiums in the north. In the two year period between 2011 and 2013, base premiums in Queensland have increased by between 20 per cent and 30 per cent and stamp duty is calculated as a percentage of the base premium.

“Higher insurance costs caused by increases in premiums and stamp duty are carried by owners and in the case of investment properties, they are passed on to people renting.”

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