The Australian Consumers Insurance Lobby Inc. (ACIL) is calling on the Queensland government to increase its disaster resilience spending to at least $912 million over five years, funded by redirecting part of the state’s insurance stamp duty. In a submission to the 2026–27 pre-budget consultation, ACIL proposes that the portion of insurance stamp duty currently levied on the GST component of premiums be allocated to a dedicated Disaster Resilience Fund. The group describes this revenue as a “tax on a tax” and says it is especially significant in Queensland, where it argues premiums are among the highest in Australia.
“[ACIL] urges the Queensland government to go beyond its existing $450 million commitment and allocate at least $912 million over five years – drawn from the stamp duty currently charged on the GST component of insurance premiums – to fund resilience initiatives across Queensland,” the submission said. According to ACIL, directing this revenue into mitigation, including a proposed $100 million a year cyclone resilience fund for North Queensland, could help lower risk exposures and place downward pressure on premiums in high-risk regions.
The submission highlights the cost burden for policyholders in cyclone-exposed areas, particularly in the north of the state. ACIL said residents in these regions can pay “up to 6–12 times more than their southern counterparts” for insurance and face higher overall tax contributions because stamp duty is charged as a percentage of the total premium. ACIL presents the estimated $912 million in stamp duty collected from the GST component over five years as an opportunity to reconsider how this segment of insurance tax revenue is used. In its submission, the lobby group says the redirection could:
Under its first proposal, ACIL recommends the creation of a Disaster Resilience Fund financed from this slice of stamp duty revenue. Its second proposal is for a dedicated $100 million a year cyclone resilience program focused on North Queensland.
The proposed cyclone resilience program is structured around property-level measures and community preparedness in cyclone-prone areas. ACIL outlines three main components: inspections, financial assistance for physical upgrades and maintenance, and public information initiatives. The submission suggests that the program include:
ACIL also proposes investment in cyclone preparedness education through information guides and media campaigns, along with local engagement programs to raise awareness of available resilience measures.
ACIL’s submission stresses that, in its view, public spending on mitigation should be reflected in insurance pricing outcomes. The lobby group recommends that the Queensland government seek formal commitments from the Australian Reinsurance Pool Corporation (ARPC) and the federal Treasury to adjust Cyclone Reinsurance Pool rates where state-funded mitigation programs demonstrably reduce risk. It proposes that changes be made on a regional basis rather than at an individual property level so that any pricing shifts apply across affected communities.
“Residents in high-risk areas are not only paying the highest premiums in the country, but they’re also contributing more tax simply because their insurance is more expensive. The fact that stamp duty is applied on top of GST only compounds this injustice. Redirecting that specific revenue stream – the so-called ‘tax on a tax’ – into disaster resilience is a targeted, logical, and fair step that the Queensland government can take now,” the submission said.
ACIL’s proposals are being advanced as part of the Queensland government’s current consultation on priorities for the 2026–27 state budget, which remains open to a broad range of stakeholders, including insurance sector participants. “We are currently inviting individuals, businesses, and community groups to share their views on priorities for the 2026–27 Queensland Budget,” the government said. Submissions must be lodged via an online stakeholder submission form by 5pm on Feb. 6. Supporting material can be uploaded in Word or PDF format, and organisations are asked to include their name in the file name. Submissions will not be published but will be provided to the Office of the Treasurer and relevant departments. For insurers, brokers, and other insurance professionals, the process provides an opportunity to comment on the interaction between state tax settings, resilience spending, and insurance affordability, particularly in high-hazard regions.
The debate over how to use insurance stamp duty is unfolding alongside the state’s broader economic and fiscal strategy, as outlined in Queensland’s latest economic outlook and budget documents. The government has stated that “Queensland’s economic growth is forecast to strengthen in the short-term and then remain robust across the forward estimates.” Gross state product growth is forecast at 2.5% in 2024–25, rising to 2.75% in 2025–26, before easing to 2.5% from 2026–27. Employment growth is projected at 3% in 2024–25, then 1.5% a year from 2025–26, broadly in line with population growth. The unemployment rate is forecast to move from 4% in 2024–25 to 4.75% by 2028–29. Wages growth is expected to be 3.75% in 2024–25, 3.5% in 2025–26, and 3% by 2028–29. On the fiscal side, general government sector revenue for 2025–26 is forecast at $91.3 billion, against expenses of $99.9 billion, resulting in a projected net operating deficit of $8.6 billion. Borrowings in the general government sector are expected to rise from $74.8 billion in 2024–25 to $95.5 billion in 2025–26 and $145.2 billion by 2028–29, with net debt forecast to increase to $93.2 billion over the same period.
In the non-financial public sector, borrowings are forecast at $147.8 billion as at June 30, 2026, increasing to $205.7 billion by 2028–29. The government has characterised the 2025–26 budget as “an important step towards restoring respect for Queenslanders’ money” and has outlined a $116.8 billion four-year capital program focused on health, housing, infrastructure, and preparations for the 2032 Olympic and Paralympic Games. Within this macroeconomic and fiscal context, ACIL’s call to earmark $912 million of insurance stamp duty for resilience initiatives focuses attention on how existing insurance-related revenue streams are deployed, and how that might influence risk, reinsurance arrangements, and insurance affordability in cyclone-exposed parts of Queensland over time.
