The rising cost and limited availability of insurance have crippled North Queensland businesses and residents for far too long. Recognising this as a market failure, the Townsville Chamber of Commerce has led the charge for urgent reform, backed by 20 Chambers across Northern Australia. Their Federal Budget submission, Insurance: The Market Failure of an Essential Service in Northern Australia, is pushing for real change.
Bringing Business Concerns to the Forefront
In January, the Chamber submitted its third report to the federal government, detailing the dire consequences of unaffordable insurance. In February, Federal Member for Dawson Andrew Willcox MP entered the submission into evidence at a federal inquiry into the Cyclone Reinsurance Pool, ensuring affected businesses’ voices were heard.
Meanwhile, during a speech to parliament, State Member for Hinchinbrook Nick Dametto MP, called for the removal of stamp duty on insurance, labelling it a “tax on a tax”.
Interviews with Chamber CEO Heidi Turner were broadcast nationally on 7 News and ABC Radio News, further highlighting the urgency of this crisis and pushing the issue into the national spotlight.
A Global Perspective on Local Challenges
In March, Heidi was invited to speak at an international roundtable, engaging with global finance, insurance, and climate risk experts. This positioned Northern Australia’s insurance crisis as a global issue, requiring government intervention.
A Call for Action
“Insurance is not a luxury – it’s an essential service that businesses need to operate, secure investment, and remain resilient,” Heidi says.
“Without action, businesses will close, jobs will be lost, and Northern Australian communities will remain vulnerable.”
The Chamber’s submission outlines six key recommendations, including:
➜ Amending the Reinsurance Pool for real premium reductions
➜ Ensuring insurers cover all of Australia, not just low-risk areas
➜ Establishing a National Insurer for market failures
➜ Abolishing GST and stamp duty on insurance, as it is an essential service
➜ Enforcing insurance company transparency to ensure savings reach consumers
➜ Investing in mitigation and resilience to reduce premiums not just risk of insurers
Strengthening Advocacy Through Business Voices
With the backing of 20 Chambers from Rockhampton to Exmouth, the Townsville Chamber remains committed to fighting for real reform – not just for one city, but for the economic survival of Northern Australia.
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