Strata Sector Urges Tax Reform to Cut Insurance Costs for Queenslanders

Queensland’s peak body for strata, Strata Community Association Queensland (SCAQ), has today joined industry calls for urgent tax reform to help ease rising insurance costs and deliver meaningful cost-of-living relief.

SCAQ General Manager Laura Bos said the Queensland Government must prioritise the removal of stamp duty on insurance premiums, particularly for strata properties, where insurance is not optional, but a legal requirement.

“There is no choice here. Strata schemes are legally required to hold insurance. This is not a luxury or an add-on, t’s compulsory under Queensland law,” said Ms Bos.

“Stamp duty on strata insurance is effectively a tax on compliance. Removing it would provide immediate, tangible relief to hundreds of thousands of Queenslanders who own or live in strata.”

With insurance premiums climbing across the board, Ms Bos said it was time for tax settings to reflect the realities faced by communities managing shared property.

“In standalone homes, owners can adjust their level of cover. But in strata, the scheme must insure to full replacement value, there is no ability to reduce coverage, even if owners are struggling to afford it,” she said.

“It’s time to stop penalising people for doing the right thing.”

SCAQ is backing the insurance sector’s call for tax reform and urging the Government to seize this opportunity to overhaul outdated revenue mechanisms like stamp duty.

“We understand the Government must balance the budget, but stamp duty is a blunt instrument, especially when it’s applied to mandatory strata insurance,” said Ms Bos.

“Shifting to more efficient, equitable tax models would help ease pressure on owners and support the Government’s own housing goals.”

Ms Bos also highlighted the need for greater investment in disaster mitigation for strata schemes, which often face unique barriers due to their collective decision-making structures.

“Strata communities want to invest in resilience, but shared governance can make accessing funding and taking action harder,” she said.

“The Government must do more to make mitigation programs strata-accessible and to shift the balance from recovery to prevention. As the Productivity Commission has noted, 97% of disaster funding currently goes to cleanup, just 3% to prevention. That equation needs to change.”

“The Queensland Government has committed to delivering a place to call home for all Queenslanders. That starts with ensuring insurance is affordable, fair, and doesn’t punish those who are required by law to participate.”