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Insurance Duty: Apportionment of General Insurance PremiumsDuties Act 2008As at 1 April 2019All Australian jurisdictions have agreed to adopt the same basis of apportionment ofpremiums where there is likelihood that a nexus to the contract of insurance could beestablished in more than one jurisdiction.The attached schedule details the basis upon which the premium paid or payable onpolicies of insurance is to be apportioned for insurance duty purposes.The Commissioners of all Australian States and Territories have approved the schedulefor application in their jurisdictions, and it also has the full endorsement of the InsuranceCouncil of Australia for use by their members.Basis of ApportionmentInsurance duty is imposed by Chapter 4 of the Duties Act 2008 on premiums paid forcontracts of insurance, which are contracts that effect general insurance.Where the insurance also relates to: property or risk outside Australia (offshore); or property or risk in another Australian State or Territory,the amount of the premium that is attributable to general insurance is determined byapportioning the premium in accordance with the schedule below.Notes to the Apportionment ScheduleWhere alternative methods are available, the method of apportionment adopted shouldbe based on the method of calculating the insurance premium. For example, where thepremium for a public liability contract is based on floor area units, insurance duty shouldbe apportioned in the same manner.For the purpose of private motor vehicle insurance, the apportionment will be based onthe State of registration. However, where the vehicle is usually garaged in anotherjurisdiction, the garaging address will take precedence.01739235Page 1 of 7
Apportionment ScheduleTYPE OF INSURANCEAviation HullAviation Hull ThirdParty Property LiabilityAviation Hull PersonalLiabilityBASIS OF APPORTIONMENTWhere the aircraft, the subject of the insurance, is a highcapacity regular public transport aircraft - apportioned onthe basis of actual take-offs and landings in the previousyear in each jurisdiction of all aircraft covered by thecontract.Where the aircraft, the subject of the insurance, is otherthan a high capacity regular public transport aircraft jurisdiction of usual hangaring of the insured property orlocation of the insured property.Notes1. The basis of apportionment will also apply wheneverthe insured company or any of its subsidiaries operateHigh Capacity Regular Public Transport Aircraft andLow Capacity Regular Public Transport Aircraft inAustralia.2. For the purposes of this Apportionment Schedule,High Capacity Regular Public Transport Aircraftmeans a regular public transport aircraft whosecertificate type approval permits the aircraft:(a) to have a maximum seating capacity of morethan38 seats; OR(b) to carry a maximum pay load of more than4,200 kilogramsNB This definition is contained in regulations made underthe Civil Aviation Act 1988 (Statutory Rule 294 of 1994)BaggageSee travelBankers Blanket PolicyApportioned according to the individual policy typesoutlined in this scheduleBlood StockState of (usual) location of the assetBoiler ExplosionAsset value/sum insured or exposure level for eachjurisdictionBurglaryAsset value/sum insured or exposure for each jurisdictionBusiness InterruptionReasonably estimated profit revenue, fees, rent or otherbusiness measurement factorCare Custody andControl of Blood StockState of (usual) location of the asset01739235Insurance Duty Apportionment SchedulePage 2 of 7
TYPE OF INSURANCECash in TransitBASIS OF APPORTIONMENTNumber of premisesAsset value/sum insured or exposure level for eachjurisdictionCompanyReimbursementSalaries and wages, number of people/employeesComprehensive CrimeContract of InsuranceSalaries, wages, number of people/employeesContract WorksAsset value/sum insured or exposure level for eachjurisdictionContractor RisksAsset value/sum insured or exposure level for eachjurisdictionCropAsset value/sum insured or exposure level for eachjurisdictionDeterioration of StockAsset value/sum insured or exposure level for eachjurisdictionDisability – singlePlace of residence of the insured/place of registration ofbusinessDisability – groupPlace of residence of the insured/place of registration ofbusinessDirectors and OfficersLiabilityTurnover or sales or number of peopleFidelity GuaranteeSalaries and wages or number of peopleFireAsset value/sum insured or exposure level for eachjurisdictionGeneral PropertyAsset value/sum insured or exposure level for eachjurisdictionHome Building andContentsAsset value/sum insured or exposure level for eachjurisdictionIndustrial Special RiskSection - 1 PropertyAsset value/sum insured or exposure level for eachjurisdictionIndustrial Special RiskSection –2 Consequential LossReasonably estimated profit revenue, fees, rent or otherbusiness measurement factor01739235Insurance Duty Apportionment SchedulePage 3 of 7
TYPE OF INSURANCEBASIS OF APPORTIONMENTLegal ExpenseInsuranceSalaries and wages or number of peopleLivestockState of (usual) location of assetLoss of ProfitsReasonably estimated profit revenue, fees, rent or otherbusiness measurement factorMachinery Breakdown(including computersand engineering)Asset value/sum insured or limit of liability declared ineach jurisdictionMarine – Builders RiskAsset value/sum insured or exposure level for eachjurisdictionMarine – Carrier’sLegal Liability – Coastaland InternationalShippingPredominant locationMarine – Charterer’sLiability – Coastal andInternational ShippingPredominant locationMarine – Hull Liability –Coastal andInternational ShippingPredominant locationNotesThe apportionment for coastal and international shippingis determined, regardless of the GMT of the vessel, basedon the ‘predominant location’ of the vessel as definedbelow:(a) On the basis that most vessels will operate from theirport of registration, the predominant location shouldbe taken to be that port, subject to (b);(b) If it is disclosed to the insurer at the time the contractis commenced, effected or renewed that the vesselwill operate out of another port for the majority of theinsurance year, then that other port will be taken to beits predominant location for that insurance year. If avessel is intended to operate out of a number of portsin an insurance year and none of those periods is forthe majority of the year, the port of registration will betaken to be the predominant location for thatinsurance year.NB Section 24 of the Marine Insurance Act 1909 (Cth)requires the insured to inform the insurer of every materialcircumstance known by the insured at the time insuranceis obtained.01739235Insurance Duty Apportionment SchedulePage 4 of 7
TYPE OF INSURANCEBASIS OF APPORTIONMENTMarine PrivatePleasurePlace of registration or place of residence of the insuredMoneyNumber of PremisesAsset value/sum insured or exposure level for eachjurisdictionMortgage InsuranceApportionment is based on the location of the propertysecured. If the security consists of two or more propertiesthat are located in different jurisdictions, theapportionment will be based on a value basisMotor Vehicle (privateuse) and/or ExtendedWarranty Insurance forPrivate Use VehiclesApportionment based on normal place of garaging of thevehicleMotor Vehicle and/orExtended Warranty CommercialPlace of registration or deemed registrationMotor Vehicle and/orExtended Warranty Fed. InterstatePlace of registration or deemed registrationMotor Vehicle and/orExtended Warranty UnregisteredPlace of (usual) location of asset-garagingOccupational(professional indemnity)Salaries, wages, number of people/employeesPersonal Accident andIllness – groupPlace of residence of the insured/place of registration ofbusinessPersonal Accident andIllness – singlePlace of residence of the insured person/place ofregistration of businessPersonal LiabilityState of registration of business or place of residence ofthe person insuredPersonal PropertyAsset value/sum insured or exposure level for eachjurisdictionPluviusAsset value/sum insured or limit of liability declared ineach jurisdictionPublic Liability or ProductLiability or BroadformSalaries, wages, number of people/employees01739235Estimated profit, fees, rent, revenue etcTurnover or SalesInsurance Duty Apportionment SchedulePage 5 of 7
TYPE OF INSURANCEBASIS OF APPORTIONMENTNumber of premisesFloor area units or rent by State of risk.Number of members of the organisation in eachjurisdictionRailway - PropertyProportion of kilometres travelled by the rolling stock ineach jurisdiction in the previous yearRailway - Public LiabilityProportion of kilometres travelled by the rolling stock ineach jurisdiction in the previous yearSprinkler LeakageAsset value/sum insured or exposure level for eachjurisdictionStrata UnitAsset value/sum insured or exposure level for eachjurisdictionTitle InsuranceLocation of the propertyTrade CreditTurnover or salesTravel (inbound toAustralia) – includesbaggageDuty payable on 90% of premium received. State ofintended stay where indicated by policyholder. If notindicated, location where the insurance companyarranged the insurance (e.g. retail outlet, call centre,internet processing centre).NoteShould an insurance company disagree with this basis ofapportionment they may apply to the Commissioner forapportionment on another basis. Where an insurancecompany elects to apportion duty on some other basisthat method of apportionment must be appliedconsistently across all jurisdictions.Travel (outbound fromAustralia) – includesbaggageDuty payable on 10% of premium received. State ofRegistration of Business (where the insured is not anatural person) or place of residence of the personinsured.NoteShould an insurance company disagree with this basis ofapportionment they may apply to the Commissioner forapportionment on another basis. Where an insurancecompany elects to apportion duty on some other basisthat method of apportionment must be appliedconsistently across all jurisdictions.01739235Insurance Duty Apportionment SchedulePage 6 of 7
TYPE OF INSURANCETravel (within Australia)BASIS OF APPORTIONMENTPlace of residence of the person insured or state ofregistration of the business (where the insured is not anatural person).Contact RevenueWAWeb Enquiry ice200 St Georges TerracePerth WA 6000Phone(08) 9262 1100PostalGPO Box T1600Perth WA 68451300 368 364(WA country landline callers)Note: This fact sheet provides guidance only. Refer to the Duties Act 2008 for complete details.01739235Insurance Duty Apportionment SchedulePage 7 of 7
Warranty Insurance for Private Use Vehicles Apportionment based on normal place of garaging of the vehicle Motor Vehicle and/or Extended Warranty - Commercial Place of registration or deemed registration Motor Vehicle and/or Extended Warranty - Fed. Interstate Place of registration or deemed registration Motor Vehicle and/or Extended Warranty -
