I live in NSW and my insurance policy document lists various taxes and levies that I am being charged. Why do I have to pay for this?
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Answer by Neha Sharma, Hillsdale 2036 NSW
- Taxes and levies are based on state laws and form a large part of what a policy holder must pay for holding an insurance policy.
- In New South Wales all home and contents policy holders must pay:
- an Emergency Service Levy to help fund fire and emergency services;
- this levy usually adds 20% to the base premium.
- GST of 10%; and
- state imposed tax on general insurance premiums.