Submission to NSW Review of Federal Financial Relations discussion paper - Working together for a better future
26 Nov 2019
IAG welcomes the opportunity to make a submission to New South Wales (NSW) Review of Federal Financial Relations Discussion Paper – Working together for a better future.
IAG has been a strong advocate for improved taxation bases and taxation reform that see revenue dependency shift from transaction style taxes (for example insurance) towards those taxes that are more efficient.
IAG believes the current regimes for the taxation of insurance are inconsistent upon the generally accepted taxation principles of simplicity, efficiency and equity. These tax regimes are inappropriate, regressive and based on historical circumstances rather than equity.
IAG notes the Discussion Paper – Working together for a better future (October 2019) examines how NSW and the Commonwealth can work together to build a stronger economy, encourage state-led reform, and ultimately, deliver better value for taxpayers. The Discussion Paper notes:
“Insurance based taxes (insurance duty, emergency services levy contribution, health insurance levy) are commonly considered to be one of the more costly taxes to society. By adding to the price of insurance, they can result in underinsurance and non-insurance.”