The Australian Government has tabled its response to the Senate Economics References Committee report The asset insurance arrangements of Australian state governments.

 

The Senate report makes four recommendations aimed at improving the States’ and Territories’ insurance arrangements and how the Commonwealth considers these arrangements.

 

These include:

  • ensuring that the States’ and Territories’ captive insurance and reinsurance arrangements are reported transparently and comparably;
  • that the Commonwealth Grants Commission take into consideration State and Territory government’s past insurance and reinsurance receipts for natural disaster insurance premiums when determining States’ and Territories’ GST share; and
  • defining the term ‘cost-effective’ as it relates to the 2011 Natural Disaster Relief and Recovery Arrangements Determination.

 

The Attorney-General Nicola Roxon said the Commonwealth Grants Commission is analysing the States’ and Territories’ premium payments and insurance receipts for the last four financial years and used this information to calculate the recommended GST distribution for 2012-13.

 

 “The government has also recently made regulations to establish the wording of a standard definition of ‘flood’ to be used in home building, home contents, small business and strata title insurance policies.

 

“The Australian Government will continue to work with States and Territories to help reduce the cost of future disasters for all Australians.”

 

A copy of the Commonwealth response to the Committee’s report can be found at www.ag.gov.au.