Insurance Protection Tax Act 2001 (NSW)

Insurance Protection Tax Act 2001 No 40

An Act to impose a tax on the total annual amount of premiums received by insurers for general insurance; to amend the Taxation Administration Act 1996; and for other purposes.

Part 1 Preliminary

1 Name of Act This Act is the Insurance Protection Tax Act 2001.

2 Commencement This Act commences on 1 July 2001.

3 Definitions In this Act— annuity means a contract that satisfies the following requirements— (a) the contract provides for the periodic payment of money to the annuitant in fee for life or for a specified term of years as an annual or more frequent entitlement, (b) the periodic payment is a sum certain expressed as a dollar amount, but may be varied according to a predetermined formula, (c) the periodic payments are not derived from the money paid for the contract but are derived solely from the contract and comprise income and not the repayment of capital. Chief Commissioner means the Chief Commissioner of State Revenue referred to in section 60 of the Taxation Administration Act 1996. exempt insurance means any of the following— (a) insurance covering only property of the Crown, (b) insurance effected by a separate policy in a distinct sum against loss by fire on the tools, implements of work or labour used by any working mechanic, artificer, handcrafter or labourer, (c) insurance taken out by or on behalf of a non-profit organisation having as one of its objects a charitable, benevolent, philanthropic or patriotic purpose, (d) insurance taken out by or on behalf of a society or institution for the time being approved for the purposes of this paragraph by the Chief Commissioner whose resources are, in accordance with its rules or objects, used wholly or predominantly for— (i) the relief of poverty, or (ii) the promotion of education, or (iii) any purpose directly or indirectly connected with defence or the amelioration of the condition of past or present members of the naval, military or air forces of the Commonwealth or their dependants or any other patriotic object, or (iv) such other purpose as, in the opinion of the Chief Commissioner, warrants the society or institution being taken to be a charitable society or institution, (e) insurance covering mortgages or pools of mortgages acquired for the purpose of issuing mortgage-backed securities within the meaning of the Duties Act 1997, (f) medical benefits insurance, being insurance effected by a contract of insurance that is issued by a private health insurer within the meaning of the Private Health Insurance Act 2007of the Commonwealth and that provides hospital benefits or medical benefits (or both), whether or not other benefits are also provided, (g) insurance effected under the Workers Compensation Act 1987 or the Workplace Injury Management and Workers Compensation Act 1998, (h) insurance of— (i) the hull of a floating vessel used primarily for commercial purposes, or (ii) goods or merchandise, or the freight of goods or merchandise, carried by land, sea or air, or both, (i) redundancy insurance in respect of a housing loan where the sum insured does not exceed $124,000, (j) reinsurance (being a contract or contracts between two parties by which one party indemnifies the other against liability or payment under a contract or contracts of insurance or reinsurance), (k) an annuity— (i) issued, created or sold by a life company, (ii) purchased by a person from a life company, (l) insurance under which the class of persons who take out the insurance are liable, or may become liable, under a contract of insurance or by or under an Act, to meet the cost of claims made under policies of insurance issued to members of that class in the event that the insurer is unable to meet the cost of those claims (due to the insolvency of the insurer, a shortfall in the funds available to the insurer to meet the cost of the claims or for any other reason), and which is insurance, or insurance of a class, for the time being approved by the Treasurer for the purposes of this paragraph. general insurance means— (a) any kind of insurance that is applicable to— (i) property in New South Wales, or (ii) a risk, contingency or event concerning an act or omission that, in the normal course of events, may occur within, or partly within, New South Wales, or both, and (b) insurance that is effected by a third-party policy within the meaning of the Motor Accidents Compensation Act 1999, but does not include life insurance, a life insurance rider or exempt insurance. insurance intermediary means— (a) a person who arranges contracts of insurance in New South Wales— (i) for reward, or (ii) as an agent for a person carrying on a business of insurance, or (b) a financial services licensee (as defined in section 761A of the Corporations Act 2001 of the Commonwealth) whose licence covers arranging contracts of insurance as an agent for a person carrying on a business of insurance, or (c) a regulated principal (as defined in section 1430 of the Corporations Act 2001 of the Commonwealth) when carrying on business as an insurance broker as authorised by Subdivision D of Division 1 of Part 10.2 of that Act. insurer means a person— (a) who writes general insurance, and (b) who does so otherwise than as an insurance intermediary, and (c) who is authorised to carry on insurance business under the Insurance Act 1973 of the Commonwealth. life insurance means insurance described in section 9 (1) (a)–(g) and 9A of the Life Insurance Act 1995 of the Commonwealth in respect of— (a) a life or lives, or (b) any event or contingency relating to or depending on a life or lives, of a person whose principal place of residence is, or persons whose principal places of residence are, in New South Wales at the time the policy that effects the insurance is issued. life insurance rider means insurance that— (a) is attached to a policy of life insurance, and (b) adds specified events and contingencies to those insured under the policy, and (c) is subject to the terms and conditions of the policy. Policyholders Protection Fund means the Policyholders Protection Fund established under section 16B.