WA motorists pay lowest third party insurance rate

27/4/00 Western Australian motorists will pay the lowest compulsory third party insurance premium in Australia after the introduction of the Goods and Services Tax.

27/4/00
Western Australian motorists will pay the lowest compulsory third party insurance premium in Australia after the introduction of the Goods and Services Tax.
In announcing the new premium today, Minister Assisting the Treasurer Graham Kierath said the combined increase through GST and the cost of claims would be 7.5 per cent.
Mr Kierath said the increase amounted to just less than $17 for private motor cars, taking the rate in WA to $238.50.
"This is a good result for WA motorists and gives them the cheapest rate in Australia," he said.
"Even with the increase they will be paying $20 less than the next cheapest State and at least $115 less than the most expensive."
Compulsory third party personal injury rates for private motor cars.

STATEPREMIUM
Western Australia$238.50
Tasmania$259.00
South Australia$270.00
Victoria$277.00
Queensland$286.00
New South Wales$330.00
Northern Territory$333.00
Australian Capital Territory$354.00

Mr Kierath said the comparison of the premium paid in other States was even more favourable for WA considering that the GST was still to be applied in Victoria, Queensland, New South Wales, the Northern Territory and the ACT.
The 7.5 per cent WA increase consisted of a 3.64 per cent GST component and 3.72 per cent to cover the anticipated general rise in providing insurance coverage.
"The State Government could have quite easily only increased the premiums by the GST rate but that would have been financially irresponsible," Mr Kierath said.
"There is no point in pretending insurance claims have not increased and risk running the third party fund into financial ruin, as happened under the previous Labor Government.
"I think motorists would rather pay what is a fair premium now than be faced with another $50 levy down the track when the scheme needs bailing out."
Mr Kierath said the adjusted GST rate for WA motorists of 3.64 per cent occurred as a result of the Insurance Council of WA taking in account input tax credits and other adjustments applicable under the new tax system.
"It is certainly more affordable than an increase of 10 per cent that many motorists would have expected with the introduction of the GST," he said.

Media contact: Zac Donovan (08) 9213 6400