Australian businesses are being charged %10  GST on total loss insurance payouts. An insurance payout is determined by market value or an agreed amount. Businesses pay GST on insurance premiums already so this is effectively a tax on a tax and doesn’t fit the definition of  goods or a service.

Unlike most cases, GST paid on an insurance settlement CAN NOT be reclaimed as GST credits.

The core purpose of insurance is to help individuals and businesses recover from unforeseen disasters, not to serve as a revenue-generating tool for the government. The GST on insurance payouts, particularly in cases where there is a total loss, undermines this purpose by reducing the funds available for genuine recovery efforts. In essence, businesses that are already suffering are forced to bear additional financial strain.

There is a compelling need to exempt total loss insurance payouts from GST in Australia. Government intervention is crucial to ensure that insurance fulfills its role as a safety net rather than becoming a fiscal burden.

We urge policymakers to amend current legislation to eliminate GST charges on insurance payouts for total loss. Let's ensure that insurance serves its intended purpose, providing real assurance and financial aid without being eroded by unnecessary taxation.

By signing this petition, you stand with Australian business owners and individuals, advocating for a fairer and more reasonable approach that truly aids in recovery. Your support can drive change and bring about a much-needed policy adjustment that will benefit countless Australians in their time of need. Please sign the petition to help eliminate the GST charge on insurance payouts, and support our businesses in their recovery journeys.