Submission to NSW Productivity Commission's discussion paper - Kickstarting the productivity conversation

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 Commission’s Discussion Paper highlighted:

“Insurance taxes encourage under-insurance and un-insurance, increasing the risks to those affected.”

The Discussion Paper also noted “insurance and motor vehicle taxes also carry high economic cost.” And:

“The tax system in New South Wales could be more efficient if it moved toward taxes that carry a lower economic cost.”