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Life insurance stamp duty axed in Victoria

The Victorian government will abolish the stamp duty on all life insurance products in Victoria from 1 July 2014.

In a Budget announcement yesterday, Victorian Treasurer Michael O’Brien said the removal of the duty on life insurance products will save Victorians around $16 million over four years.

Mr O’Brien said the move is part of the Victorian government’s overall plan to provide a quarter of a billion dollars in tax relief to Victorians.

Financial Services Council chief executive John Brogden has hailed the Victorian government’s decision to remove the life insurance stamp duty, stating “different obligations imposed by stamp duty legislation in each state have created a massive administrative burden on the life insurance industry, which operates at a national level”.

“The announcement today by the Victorian Treasurer to abolish stamp duty on life insurance is a positive move towards eliminating inefficient taxes and red tape,” said Mr Brogden.

He believes other states should follow the lead of Victoria and the ACT, which abolished life insurance stamp duty last year.

“The move by the Victorian government and the ACT’s tax reforms in 2013 have shown that good process, some policy nous and courage can deliver,” Mr Brogden said.