3 min read · Updated . Reviewed by James Rock (National Partnerships Director).
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What is stamp duty on insurance?
It’s a tax that each state and territory charges on insurance premiums, sometimes called insurance duty. The insurer collects it and pays it to the state revenue office, so it’s part of the premium you’re shown. Queensland and Tasmania both charge it on the premium including GST, which means duty is charged on top of the GST.
How much is stamp duty on insurance in each state?
| State or territory | Rate on general business insurance | Note |
|---|---|---|
| New South Wales | 9% | Type A general insurance. Motor vehicle and some other classes are 5%, and small businesses can be exempt on some classes. |
| Victoria | 7% | Business insurance effected or renewed from 1 July 2026 to 30 June 2027. Non-business insurance is 10%. |
| Queensland | 9% | Of the premium paid, including GST. |
| Western Australia | 10% | Of the total premium. |
| South Australia | 11% | The highest rate in the country. |
| Tasmania | 10% | Of the premium paid, including GST. |
| Northern Territory | 10% | Of the premium. |
| ACT | None listed | The ACT Revenue Office doesn’t list general insurance duty among its business taxes. |
Rates from each revenue office, checked 1 November 2026. Your own policy may fall into a different class, and exemptions apply, so check with your insurer.
What does it add to a premium?
Here’s the duty on a premium of $1,000 including GST, using the rates above. It’s an illustration of the arithmetic only.
| State | Duty on $1,000 |
|---|---|
| Victoria | $70 |
| NSW or Queensland | $90 |
| WA, Tasmania or NT | $100 |
| South Australia | $110 |
On a machine with a large premium, the gap between states is real money. Our indication already includes the duty for your state, because it’s one of the details the premium is worked out from.
How is Victoria phasing it out?
The State Revenue Office says duty on business insurance reduces by one percentage point each year from 1 July, until it’s abolished from 1 July 2033. The rate depends on when the contract is effected or renewed, not when you pay the premium.
| Contract effected or renewed | Rate |
|---|---|
| 1 July 2026 to 30 June 2027 | 7% |
| 1 July 2027 to 30 June 2028 | 6% |
| 1 July 2028 to 30 June 2029 | 5% |
| 1 July 2029 to 30 June 2030 | 4% |
| 1 July 2030 to 30 June 2031 | 3% |
| 1 July 2031 to 30 June 2032 | 2% |
| 1 July 2032 to 30 June 2033 | 1% |
| From 1 July 2033 | Nil |
If a contract covers both business and non-business risks, the premium is split, and the part that isn’t business pays 10%.
Does the rate depend on where I live or where the machine is?
Duty follows the property or risk being insured. The NT, for example, applies its duty to property or risk in the Territory and allocates a premium that also covers somewhere else. If your machines are based in different states, the premium can be split between them.
Is there a small business exemption?
In NSW, yes, for some classes. A business with aggregated turnover under $2 million can be exempt on commercial vehicle, commercial aviation, occupational indemnity, and product and public liability insurance, by giving the insurer a declaration each year. Plant insurance isn’t one of the named classes, so ask your insurer how it applies. Check with your accountant or the revenue office for your own situation.
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Frequently asked questions
How much is stamp duty on insurance in NSW?
9% of the premium on general insurance. Motor vehicle cover and some other classes are 5%.
How much is stamp duty on insurance in Victoria?
For business insurance, 7% on contracts effected or renewed from 1 July 2026 to 30 June 2027, falling one percentage point a year until it’s abolished from 1 July 2033. Non-business insurance is 10%.
Which state has the highest stamp duty on insurance?
South Australia, at 11% of the premium.
Does the ACT charge stamp duty on insurance?
The ACT Revenue Office doesn’t list general insurance duty among its business taxes and levies.
Is stamp duty charged on the GST?
Queensland and Tasmania both calculate duty on the premium including GST.
Sources
- Revenue NSW: Types of insurance, and Small business exemption
- State Revenue Office Victoria: Insurance policies (current rates), and Abolition of duty on business insurance premiums
- Queensland Revenue Office: Insurance duty rates (updated 13 March 2025)
- WA Department of Finance: Self-assess and pay insurance duty (updated 14 March 2026)
- RevenueSA: Stamp duty on insurance, rates
- State Revenue Office of Tasmania: Rates of duty (published 5 August 2026)
- NT Government: Examples of duty and rates
- ACT Revenue Office: Business taxes and levies
General information only, not personal advice. Read the policy wording before you buy.
