Farm Insurance Online :: News
SHARE

Share this news item!

New Report Highlights Insurance Challenges for Australian Small Businesses

State Taxes and Levies Contributing to Rising Insurance Premiums

New Report Highlights Insurance Challenges for Australian Small Businesses?w=400

The information on this website is general in nature and does not take into account your objectives, financial situation, or needs. Consider seeking personal advice from a licensed adviser before acting on any information.

A recent report by the Australian Chamber of Commerce and Industry (ACCI) has revealed that small businesses in Australia are paying up to 30% more for their insurance premiums due to taxes and levies imposed by state and territory governments.
This financial burden is leading to a worrying trend where an increasing number of small businesses are either underinsuring or forgoing insurance altogether.

The report, titled 'Addressing the Small Business Insurance Challenge,' highlights several key findings:

  • Impact of State Taxes and Levies: Additional charges such as stamp duty and emergency service levies can add up to 30% to the cost of insurance premiums, significantly affecting small businesses' financial health.
  • Underinsurance and Non-Insurance: Rising premium costs, coupled with other business expenses like energy and labour, are causing many small businesses to underinsure or opt out of insurance coverage, exposing them to greater financial risk.
  • Recommendations for Small Business Owners: The ACCI advises small business owners to engage insurance brokers to identify appropriate policies and avoid over- or under-insuring. Additionally, conducting risk audits can help mitigate exposure to threats such as cyber-attacks, workplace hazards, and physical security issues.

To alleviate the insurance cost burden, the report recommends that governments:

  • Abolish unproductive taxes and levies that inflate insurance premiums.
  • Initiate a Productivity Commission review into small business and insurance costs.
  • Modernise civil liability laws to improve access to public liability insurance for small businesses.
  • Establish a dedicated government funding body to support small businesses in enhancing their insurance literacy and risk management practices.

In summary, the ACCI's report underscores the pressing need for policy reforms to reduce the financial strain on small businesses caused by escalating insurance costs. By addressing these challenges, the aim is to foster a more sustainable and resilient small business sector in Australia.

Published:Thursday, 20th Nov 2025
Source: Paige Estritori

Please Note: If this information affects you, seek advice from a licensed professional.

Share this news item:

Insurance News

Australian Insurers Report Record Profits Amid Public Scrutiny
Australian Insurers Report Record Profits Amid Public Scrutiny
20 Nov 2025: Paige Estritori
The Australian general insurance industry has reported an after-tax profit of $7.3 billion for the last financial year, marking its strongest performance in over a decade. This significant profit surge is attributed to lower-than-expected catastrophe losses and robust investment returns. However, this financial success has sparked public discourse regarding the fairness of pricing practices and the overall perception of the industry. - read more
ASIC Highlights Compliance Risks in Insurers' Claims Handling Practices
ASIC Highlights Compliance Risks in Insurers' Claims Handling Practices
20 Nov 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has identified significant weaknesses in the claims handling practices of several insurers, raising concerns about potential compliance breaches. The regulator's recent review points to deficiencies in the oversight of expert reports and inadequate communication with consumers regarding cash settlement offers. - read more
Australian Insurers Brace for Earnings Slowdown After Record Profits
Australian Insurers Brace for Earnings Slowdown After Record Profits
20 Nov 2025: Paige Estritori
After achieving a return on equity (ROE) of 19% in the last financial year-the highest in a decade-Australian general insurers are preparing for a moderation in earnings growth. Consultancy firm Finity projects that the industry's ROE will decrease by six percentage points to 13% in the current financial year, aligning with the target range of 10% to 15%. - read more
Rising Liability Costs Put Pressure on Australia's Leisure Sector
Rising Liability Costs Put Pressure on Australia's Leisure Sector
20 Nov 2025: Paige Estritori
The Australian Amusement Leisure & Recreation Association (AALARA) has raised concerns over the escalating costs of public liability insurance, which are placing significant pressure on amusement and recreation operators across the country. This warning follows the Insurance Council of Australia's (ICA) recent call for reforms to civil liability laws. - read more
New Report Highlights Insurance Challenges for Australian Small Businesses
New Report Highlights Insurance Challenges for Australian Small Businesses
20 Nov 2025: Paige Estritori
A recent report by the Australian Chamber of Commerce and Industry (ACCI) has revealed that small businesses in Australia are paying up to 30% more for their insurance premiums due to taxes and levies imposed by state and territory governments. This financial burden is leading to a worrying trend where an increasing number of small businesses are either underinsuring or forgoing insurance altogether. - read more


Farm Insurance Articles

Farm Insurance Comparison: Secure Your Farm with the Right Coverage
Farm Insurance Comparison: Secure Your Farm with the Right Coverage
As a farm owner, your livelihood depends not only on the hard work you put in but also on the protection you have in place against unforeseen events. Farm insurance is crucial in safeguarding your investments, ensuring that your operations can continue smoothly even when faced with unexpected challenges. - read more
Understanding Machinery Breakdown Insurance for Australian Farms
Understanding Machinery Breakdown Insurance for Australian Farms
Welcome to our in-depth exploration of Machinery Breakdown Insurance—a safety net that's becoming increasingly important for the modern Australian farmer. Whether you're involved in cropping, dairy, or livestock, your equipment is the backbone of your operation. As farming technology evolves, the machinery becomes more sophisticated, and unfortunately, the more complex a system is, the more that can go wrong. This is where Machinery Breakdown Insurance comes into play. - read more
Understanding the Different Types of Farm Insurance Coverage
Understanding the Different Types of Farm Insurance Coverage
In the world of farming, risks are an everyday reality. Whether you're dealing with unpredictable weather, pest invasions, or fluctuating market prices, the uncertainties can be overwhelming. This is where farm insurance comes into play. - read more
Adapting to Change: How Australian Farms Can Thrive Amidst Climate Shifts
Adapting to Change: How Australian Farms Can Thrive Amidst Climate Shifts
Australia's agricultural sector stands as a testament to the resilience and ingenuity of its farmers. Yet, this stalwart industry faces one of its greatest challenges: climate change. Rising temperatures, erratic weather patterns, and extreme events, from droughts to floods, are now common hurdles on the landscape of Australian farming. - read more
Essential Coverage: The Top Insurance Policies Every Australian Farmer Should Consider
Essential Coverage: The Top Insurance Policies Every Australian Farmer Should Consider
Welcome to a critical discussion surrounding the stability and protection of your farming enterprise. In the unpredictable world of agriculture, insurance plays a pivotal role in safeguarding the future of your business. As we delve into the intricacies of insurance coverage, we aim to establish a strong foundation for enduring success in the farming industry. - read more


Farm Type:
Postcode:

Insurance quotes are provided free and without obligation by a specialist from our national broker referral network. See our privacy statement for more details.


Knowledgebase
Waiting Period:
The time period that must pass after filing a claim before the insurance coverage becomes effective or benefits are paid.