Plant And Equipment 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

Envest Group Unveils TLI Underwriting: A New Era for Heavy Motor Fleet Insurance
Envest Group Unveils TLI Underwriting: A New Era for Heavy Motor Fleet Insurance
21 Nov 2025: Paige Estritori
Envest Group, a prominent player in Australia's insurance sector, has announced the launch of TLI Underwriting, a new agency dedicated to providing specialized insurance solutions for heavy motor fleet operators. This strategic move aims to address the unique challenges faced by larger transport businesses in Australia. - read more
ASIC Initiates Legal Proceedings Against QBE for Alleged Misleading Discount Practices
ASIC Initiates Legal Proceedings Against QBE for Alleged Misleading Discount Practices
21 Nov 2025: Paige Estritori
The Australian Securities and Investments Commission (ASIC) has commenced legal action against QBE Insurance, alleging that the insurer misled more than 500,000 customers regarding premium discounts over a five-year period. This development has significant implications for the Australian insurance industry, particularly for policyholders seeking transparency and fairness in premium calculations. - read more
Hutch Underwriting's Trade Pack: Simplifying Insurance for Australian SME Tradies
Hutch Underwriting's Trade Pack: Simplifying Insurance for Australian SME Tradies
21 Nov 2025: Paige Estritori
Hutch Underwriting has unveiled Trade Pack, a comprehensive insurance solution designed specifically for Australia's small and medium-sized trade businesses (SMEs). This innovative product aims to streamline coverage and alleviate the administrative challenges often faced by brokers and tradies alike. - read more
IAG's AI Integration: Revolutionising 'Make Safe' Repair Assessments
IAG's AI Integration: Revolutionising 'Make Safe' Repair Assessments
21 Nov 2025: Paige Estritori
Insurance Australia Group (IAG) has integrated generative artificial intelligence (AI) into its property claims assessment process, specifically to determine the necessity of 'make safe' repairs. This technological advancement aims to enhance operational efficiency and reduce costs associated with unnecessary contractor dispatches. - read more
Hollard Insurance's Costly Lesson: The Impact of Contractor Negligence
Hollard Insurance's Costly Lesson: The Impact of Contractor Negligence
21 Nov 2025: Paige Estritori
Hollard Insurance has been ordered to pay over $225,000 in compensation after contractors appointed by the insurer caused significant dust damage during home repairs. This case underscores the critical importance of diligent contractor oversight in the insurance industry. - read more


Equipment Insurance Articles

What does plant and equipment insurance cover?
What does plant and equipment insurance cover?
Plant and equipment insurance is a specialized form of coverage designed to protect the tools and machinery that businesses rely on for their operations. This type of insurance typically covers various assets, including construction machinery, agricultural equipment, and industrial tools. By safeguarding these critical assets, you can ensure that your business continues to run smoothly even in the event of loss or damage. - read more
What Paperwork is Necessary When Applying for Plant and Equipment Insurance?
What Paperwork is Necessary When Applying for Plant and Equipment Insurance?
In the bustling world of business, safeguarding your assets is crucial. This is especially true for industries reliant on machinery and equipment. One essential type of coverage for such businesses is plant and equipment insurance. It provides financial protection against risks associated with the loss or damage of your essential tools. - read more
Understanding Plant and Equipment Insurance: A Guide for Small Business Owners
Understanding Plant and Equipment Insurance: A Guide for Small Business Owners
When it comes to running a small business, particularly in sectors like construction, having the right insurance is essential. This is where plant and equipment insurance comes into play. It protects your valuable machinery and tools, allowing you to focus on your projects without the constant worry of potential financial loss. - read more
Understanding Owned vs. Hired-In Plant Insurance: A Comprehensive Guide for Australian Businesses
Understanding Owned vs. Hired-In Plant Insurance: A Comprehensive Guide for Australian Businesses
Understanding plant and equipment insurance is crucial for any contractor in Australia. This type of insurance protects your valuable machinery and tools from unforeseen events that could disrupt your business. Without proper coverage, equipment damage or loss can lead to significant financial strain, potentially jeopardizing your operations. - read more
Is Plant and Equipment Insurance a Legal Requirement for Australian Contractors?
Is Plant and Equipment Insurance a Legal Requirement for Australian Contractors?
Plant and equipment insurance is a specialized type of coverage designed to protect construction and contracting businesses against financial losses related to their machinery and tools. This includes any equipment used in the delivery of services, such as excavators, cranes, and other vital equipment. In essence, this insurance safeguards your investment, providing peace of mind as you focus on your projects. - read more


Your free insurance quote comparison starts here!
First Name:
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
Elimination Period:
The time period between an injury and the receipt of benefit payments from an insurer, particularly in disability insurance.