'IAG is a strong advocate for improved taxation bases and reform that will shift revenue dependency from transaction style taxes towards those that offer a greater economic benefit for Australian households,' IAG Consumer Division Chief Executive Anthony Justice said.

'The end of the Emergency Services Levy will be welcome news for our New South Wales customers, who will now enjoy the benefit of more affordable insurance premiums in-line with other states and territories.

'IAG appreciates the significance of the new reform and we look forward to working closely with the government to ensure a seamless transition for our customers,' Mr Justice added.

A number of Federal and State Government reviews and inquiries have argued for insurance tax reform: the IPART Review of State Taxes (2008), the Henry Tax Review (2009), the Victorian Bushfire Royal Commission (2009), the Johnson Report into Australia as a Financial Centre Forum (2009), Tax Forum (2011), Lambert Report (2011), ACT Taxation Review (2012), Productivity Commission Report on Barriers to Effective Climate Change Adaptation (2012) and the Productivity Commission Report into Natural Disaster Funding Arrangements (2014).

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