The Insurance Council of Australia (ICA) has presented a set of recommendations to the Queensland Productivity Commission as part of the commission’s current review of the construction sector.
The ICA’s submission – responding to the draft report Opportunities to Improve the Productivity of the Construction Industry – identified several policy areas that the council believes are critical to improving both the resilience of the built environment and the affordability of insurance in Queensland.
One of the ICA’s primary proposals is the removal of the 9% stamp duty on general insurance premiums.
The council reports that Queensland residents collectively paid $1.66 billion in insurance stamp duty during the 2024-25 period, averaging $265 per person. It argues that eliminating this tax could help reduce costs for policyholders and support broader insurance uptake.
The submission also highlighted the need for changes to land-use planning. The ICA recommends that future development should be directed away from areas with high exposure to extreme weather, particularly flood-prone regions.
The council suggests that planning frameworks should prioritise low-risk and zero-risk zones to minimise future disaster losses.
Enhancing the resilience of new housing stock is another focus of the ICA’s recommendations. The council calls for collaboration with industry stakeholders, including insurers, to ensure that new construction does not embed future risks.
According to the ICA, the average annual cost of disasters for Australians is now around $1,500, underscoring the need for more robust building standards.
The ICA further advises that Queensland pursue outstanding recommendations from the 2018 Building Confidence Report and support initiatives to rectify serious building defects.
It noted that unresolved defects can increase community vulnerability during emergencies and may result in insurance complications.
To address workforce shortages following major weather events, the ICA supports the automatic recognition of interstate trade qualifications. This measure is intended to facilitate a rapid response and efficient repairs in the aftermath of disasters.
The submission also calls for Queensland to implement a program for combustible cladding rectification, similar to those in place in New South Wales and Victoria.
Andrew Hall, CEO of the ICA, commented on the importance of disaster risk in the context of the construction industry review.
“As the most disaster-prone state in Australia, it’s essential the Queensland government take the severity and frequency of natural disasters into account when undertaking its inquiry into the productivity of the construction industry,” he said.
He added that insurance reflects the level of risk, so reducing that risk requires building more resilient homes in safer locations.
The ICA’s full set of policy recommendations is available in its recent publication, A Stronger Queensland – Policy Recommendations for the next Queensland Government.
