Victoria Plumber Insurance Duty in 2026–27: 7% for Public and Products Liability

According to the State Revenue Office’s abolition guidance, updated 1 July 2026, the APRA-reportable part of a public and product liability premium is rated at 7% when the relevant contract is effected or renewed from 1 July 2026 to 30 June 2027; premium parts that are not business insurance remain at 10%. The contract’s effected or renewal date controls the rate, not the payment date, while a premium increase caused by an endorsement follows the endorsement’s effective date. Figures checked 1 October 2026.

Why does public and product liability fall within the reduction?

The State Revenue Office includes public and product liability among the specified classes of business insurance under the Australian Prudential Regulation Authority’s Prudential Standard. The reduction applies automatically when the insurer reports the relevant premium to APRA under that specified class; businesses do not need to apply for the reduced rate.

For a plumber, this means the treatment does not depend merely on a policy being described as “plumber insurance”. The insurer’s APRA classification and the premium portion allocated to the specified class determine whether the reduction applies. An unlisted insurance type may also qualify if the insurer reports its premium to APRA under a specified class.

There are exceptions. The Victorian Treasurer can make declarations through the Victorian Government Gazette, including declaring insurance within a specified class not to be business insurance. For example, public liability insurance attached to householder policies has not been business insurance since 1 July 2024.

How is a packaged policy premium apportioned?

Public and product liability can form either a standalone contract or part of a package containing other insurance. If only some premium parts are APRA-reportable under specified classes, the State Revenue Office requires the premium to be apportioned.

Being part of a package does not prevent the specified-class portion from receiving the reduced rate. However, the reduced rate should not be applied automatically to the entire packaged premium.

Which contract date determines the business-insurance rate?

The State Revenue Office sets the rate by when the contract is effected or renewed. The date the premium is paid does not change it.

These rates apply to the business-insurance premium parts. General insurance that is not business insurance remains subject to 10% duty.

What happens if an endorsement adds cover during 2026–27?

An endorsement has its own effective date for determining the duty rate on the resulting premium increase.

In the State Revenue Office’s example, a contract is effected on 1 February 2026 and initially rated at 8%. An endorsement adds business insurance with an effective date of 1 July 2026, so duty on the increased premium is charged at 7%.

The endorsement date therefore matters even where the original contract was effected during an earlier duty period.

What happens if part of the premium is refunded?

An insurer is entitled to a duty refund when it refunds all or part of a dutiable premium on which duty has been paid. For business insurance, the refund corresponds to the original duty paid on the premium amount refunded.

The original contract’s effected or renewal date controls the calculation, not the cancellation date. In the State Revenue Office’s example, a contract effected on 1 January 2026 was rated at 8%. When part of its premium was refunded on 1 July 2026, the duty refund remained calculated at 8%, rather than moving to the then-current 7% rate.

Does a 7% duty rate mean the plumber’s premium is 7%?

No. The 7% figure is the duty rate applicable to the relevant premium part, not the total insurance premium.

The State Revenue Office’s general insurance duty guidance, updated 8 December 2025, explains that the insurer pays the duty and usually includes that cost in the policy premium. Duty is calculated as a percentage of the premium, including GST and commissions. A reduction in the duty rate does not promise an equal reduction in a plumber’s total premium.

What should a plumber check before relying on 7%?

Ask the insurer to confirm:

• whether the public and product liability premium is APRA-reportable under the specified class;
• whether the policy is standalone or packaged;
• how any packaged premium has been apportioned;
• the date the contract was effected or renewed; and
• the effective date of any endorsement that added or changed cover.

This is general information, not financial or legal advice. Check the current State Revenue Office guidance and the policy’s PDS before relying on the 7% rate.

Sources

• Abolition of duty on business insurance premiums | State Revenue Office
• Understanding insurance duty | State Revenue Office

FAQ

Does every plumber liability policy receive the 7% rate in 2026–27?

No. The 7% rate applies to the APRA-reportable business-insurance portion when the relevant contract is effected or renewed from 1 July 2026 to 30 June 2027. Other premium parts that are not business insurance remain at 10%.

Does paying the premium during 2026–27 make the policy 7%?

No. The original contract’s effected or renewal date determines the rate. The date the premium is paid does not affect it.

What happens when an endorsement adds business insurance?

Duty on the resulting premium increase follows the endorsement’s effective date. An endorsement effective on 1 July 2026 attracts the 7% rate for that increase, even if the original contract was effected at an earlier rate.

Is the whole premium in a packaged policy rated at 7%?

No. The premium must be apportioned. APRA-reportable parts within specified classes receive the phased business-insurance rate, while parts that are not business insurance remain at 10%.

What duty rate is used after a partial premium refund?

The refund corresponds to the original duty paid on the amount refunded. It is calculated using the contract’s effected or renewal date, not the cancellation or refund date.