Taxes on insurance now exceed the cost of the insurance!

[simongu]

Just a bit of a rant here, I notice from the latest property insurance invoice for one of my 2-brm units, that although the actual premium itself has had its usual double digit annual increase (to ~$530), due to the increase in EQC levy from $200 to $300 this plus the other taxes (Fire, GST, Natural Disaster) now come to about $620 so well above the cost of the actual provision of service ie taxation rate > 100%.

Might drop this into conversation next time tenant complains about rent increase (well, its $11pw for insurance and $12pw to the Govt for tax on same...)

What, rental housing shortage, cant think why...

[Perry]

But, but they're not increases in taxes, according to Taxcindarella et al.
They're simply 'adjustments' to existing levies & charges.

[simongu]

Silly me...

[hawkeye]

EQC levy isn’t tax it’s an insurance premium for the portion of the cover they have reinsured with EQC.

[simongu]

Its imposed by the govt, its a tax

[Perry]

Or a levy, or a surcharge or a service fee or an excise or a user charge or a . . . .