The ACT tops a Business Council of Australia ranking of the lowest insurance duties – because it has none.

The BCA’s annual report on the cost of doing business ranks Victoria worst overall, but in terms of insurance duties the state is second behind ACT, lifted by a phase-down of business insurance taxes. 

NSW, Queensland and Tasmania follow, then WA and the NT with 10% duties across general insurance, professional liability and compulsory third party motor cover. 

SA has the highest insurance duty rates, at 11% for the three classes. 

Victoria has legislated a reduction of duty on non-motor business insurance, which will cut the rate by 1 percentage point a year until the duty is abolished in 2033. 

The BCA compares insurance duties nationwide as one of 16 business costs examined. 

It also ranks states and territories on factors including payroll and land taxes, time frames for development approvals, licensing and workers’ compensation premiums. 

The association notes workers’ compensation is highly complex, with differences in entitlements and premiums under each jurisdiction, and varying insurance schemes. 

Queensland has the most competitive premiums, followed by WA, with the ACT moving up into third place after reducing its suggested reasonable premium rate. 

Queensland premiums are one-third lower than in the NT, which has the highest premiums. 

Despite SA’s poor ranking on insurance duties, for the fourth year running the state has topped the nation for the best regulatory and tax settings for business.