In the 2017 Budget the Turnbull Government announced that it will provide $7.9 million to the Australian Competition and Consumer Commission ACCC to fund an inquiry into insurance premiums in Northern Australia.
The ACCC inquiry will monitor and report on prices, costs and profits in the insurance market for home, contents and strata insurance in northern Australia, with a particular focus on the impact of natural catastrophe risk on the insurance market in northern Australia.
The Minister for Revenue and Financial Services Kelly O’Dwyer said the ACCC inquiry was an important step in ensuring that all relevant factors impacting affordability including federal and state regulations can be considered.
“There are actions that the Queensland Labor Government could take immediately to reduce insurance premiums in Northern Queensland including reforming strata regulations and addressing inefficient state taxes, including stamp duties on insurance premiums,” Minister O’Dwyer said.
“The Federal Labor Opposition should focus on encouraging their Queensland Labor colleagues to take action immediately and encourage them to respond to my latest letter of April 2017.”
The Government remains committed to working with all stakeholders to develop solutions that will lead to sustainable reductions in premium levels, promote a competitive insurance market and make a recognisable difference for consumers in northern Australia.
Minister O’Dwyer said the ACCC inquiry will be robust and provide a detailed understanding of the insurance market in northern Australia.
“Importantly, the ACCC inquiry that the Turnbull Government has funded will be able to directly consider the impact on insurance premiums of tropical cyclone Debbie.”