The ACT Revenue Office has issued Revenue Circular DAA013 (General insurance duty adjustments). As part of the ACT’s taxation reform measures, the amount of duty charged on general insurance is being abolished progressively over 5 years. Duty will be reduced by 20% each year until 1 July 2016, when the duty rate for insurance premiums will reduce to nil. For policies that have been cancelled under an earlier duty rate period, the ACT Revenue Office says an adjustment formula can be applied to the online return form. The adjustment formula will ensure the amount payable under a monthly return will be reduced by the same amount as the duty refund amount for an earlier period. The Revenue Circular took effect on 16 January 2014.
[LTN 12, 20/1/14]