General and life insurance
Registered insurers are liable to pay duty on policies of general insurance and life insurance.
When is the duty payable?
The duty becomes payable once a premium has been paid, ie when:
the premium or instalment is received by the insurer, or
an account of the insurer is credited with the amount of premium or instalment.
A premium, or instalment of a premium, is taken to have been received by an insurer if another person receives it on the insurer's behalf.
What is a premium?
A premium is the total consideration given to an insurer by or on behalf of the insured person to effect insurance, without deductions by way of commission or discount to an insurance intermediary.
A premium includes a fire service levy and an emergency service levy paid or payable in connection with insurance by an insurer or any other person, and GST.
A premium does not include an amount paid to an insurance intermediary provided that the amount can be clearly identified as a fee, or any duty.
When is my return due?
The registered insurer must lodge a return by the 21st day of the month and pay the appropriate duty, calculated on the premiums received during the preceding month.