Ahead of the 2019-20 State Budget next week, the Queensland Farmers’ Federation (QFF) has renewed calls for the government to remove stamp duty on agricultural insurance and even the playing field for Queensland farmers.
While the Queensland Government continues to collect 9 per cent on agricultural insurance premiums and the GST, Queensland farmers are operating at a competitive disadvantage to their counterparts in other states and countries.
QFF President Stuart Armitage said other Australian states had recognised the need to remove the tax and called on the Queensland Government to deliver the same sensible reform.
“The Victorian, New South Wales and the South Australian governments have all abolished this inefficient tax, leaving Queensland farmers well behind,” Mr Armitage said.
“Agriculture operates in a global environment, so we are also in direct competition with farmers from other countries, such as the US, Canada and Europe, that service the same high-quality markets that we do. These farmers receive very generous agricultural insurance subsidies and benefits from other business support policies.”
“According to a draft report by KPMG into the feasibility of abolishing stamp duty on agricultural insurance products and QFF’s own figures, the loss in tax revenue is minimal, but the potential returns of developing the nascent insurance market in Queensland could be substantial.”
“Queensland farmers need more targeted and affordable insurance options. Abolishing this tax is another hurdle that needs to be removed to realise this, which is why QFF and our members have been advocating for its removal for years.”
“A more mature insurance market benefits industry and government as it would help mitigate the financial impact of extreme weather events on farm businesses and remove some of the burden that falls to government.”