Self-assess and pay insurance duty

General insurance is any kind of insurance that is applicable to property in WA, or a risk, contingency or event concerning an act or omission that, in the normal course of events, may occur within WA. Common general insurance policies cover motor vehicles, house and contents, travel insurance, non-life insurance etc.

Duty is calculated at a rate of 10% on the total premium paid in relation to the policy of general insurance. A premium is the total consideration paid to an insurer by, or on behalf of, an insured person. If the total consideration includes goods and service tax (GST), that amount will be included as part of the premium.

Premiums can be apportioned between jurisdictions where more than one jurisdiction has nexus to the contract of insurance.

A duty liability may exist within the Indian Ocean Territories as if they were Western Australia. See details of the arrangement between Western Australia and the Commonwealth.

A general insurer is an entity or person that

• writes general insurance
• is authorised under the Insurance Act 1973 (Cth) or registered under the Life Insurance Act 1995 (Cth)

The Insurance Commission of Western Australia (and any similar body of another State or Territory) is a general insurer.

An intermediary is an entity or person that effects a policy of insurance with an entity or person other than a general insurer.

An insured person is someone who has obtained a policy of insurance from an entity or person who is not a general insurer or an intermediary.

General insurance effected by an exempt body is not liable for insurance duty. An exempt body specifically refers to a public authority that is declared as such by the Minister of Finance with notice of declaration published in the Government Gazette.

General insurance does not include any of the following

• life insurance
• insurance against an employer’s liability to pay compensation under the Workers’ Compensation and Injury Management Act 1981
• reinsurance (that is, the indemnification of one party by another against liability or payment arising under a contract of insurance or reinsurance)
• insurance in respect of goods in the course of being transported, whether by rail, road, air or sea, and whether within Western Australia or elsewhere
• insurance in respect of a marine hull used primarily for commercial purposes
• insurance effected by an exempt body (under s92 of the Duties Act 2008)
• insurance issued by a private health insurer (as defined in the Private Health Insurance Act 2007 (Cth) Schedule 1) in the course of its health insurance business (as defined in section 121(1) of that Act)
• insurance under the Defence Service Homes Insurance Scheme (as defined in the Defence Service Homes Act 1918 (Cth) section 38)
• offshore risk insurance
• insurance of a prescribed class

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