Yes—the Queensland Revenue Office says insurance duty on WorkCover policies is 5% of the net premium; its rates page was updated 13 March 2025, and figures were checked 1 October 2026. That same source lists 9% of the premium paid, including GST for class 1 and class 2 general insurance, 10 cents on a CTP premium and 5% of the first year’s premium for temporary or term life insurance. The percentages may match, but the premium bases do not.
What does “net premium” mean for WorkCover duty?
The key distinction is the wording net premium. Class 1 and class 2 general insurance instead use the premium paid, including GST.
Queensland Revenue Office describes the premium as the total amount paid to the insurance company and says GST is considered part of the premium for duty purposes. However, the WorkCover entry separately specifies the net premium. Its rate entry does not explain how a particular net premium is derived, so do not substitute the general-insurance basis without checking the regulator guidance and the policy’s PDS.
How do other Queensland insurance duty rates compare?
| Insurance type | Duty stated by Queensland Revenue Office |
|---|---|
| WorkCover policies | 5% of the net premium |
| Class 1 and class 2 general insurance | 9% of the premium paid, including GST |
| CTP insurance | 10 cents imposed on a premium |
| Temporary or term life insurance | 5% of the first year’s premium |
| Other life insurance where the sum insured is up to $2,000 | 0.05% of the sum insured |
| Other life insurance where the sum insured is over $2,000 | 0.05% of the first $2,000 plus 0.1% of the balance |
The two entries showing a 5% rate therefore lead to different calculations: WorkCover uses the net premium, while temporary or term life insurance uses the first year’s premium.
Why does the insurance classification matter?
Queensland Revenue Office says different duty rates apply according to the type of insurance. General insurance includes car, home and contents insurance, but it is divided into classes:
- Class 1 is general insurance other than CTP or class 2 general insurance.
- Class 2 covers or relates to professional indemnity, a motor vehicle other than CTP, a first home mortgage, personal injury relating to aircraft travel or a life insurance rider.
- Both class 1 and class 2 general insurance attract the 9% rate.
A life insurance rider is attached to a life insurance policy and provides additional capital payments if the insured person becomes disabled or accidentally dies. All or part of the rider’s premium must be stated separately on the policy.
What should you check before applying the WorkCover rate?
- Confirm that the policy is actually a WorkCover policy rather than another type of accident or general insurance.
- Check the policy class and the premium basis stated in the PDS.
- Do not replace net premium with premium paid, including GST without checking the applicable guidance.
- Treat CTP separately from general insurance because its stated duty is 10 cents.
- Check whether a life insurance rider and its premium are stated separately.
This is general information, not financial or legal advice. Check the Queensland Revenue Office rates page and your policy’s PDS for the applicable classification, rate and premium basis.
Sources
FAQ
Is Queensland WorkCover duty 5% or 9%?
WorkCover insurance attracts 5% of the net premium. The 9% rate applies to class 1 and class 2 general insurance calculated on the premium paid, including GST.
Is CTP insurance also subject to 5% duty?
No. The stated duty for CTP insurance is 10 cents imposed on a premium.
What duty applies to temporary or term life insurance?
The duty is 5% of the first year’s premium. This is a different premium basis from the 5% of the net premium rule for WorkCover policies.
Does every accident policy use the WorkCover rate?
Do not assume so from the policy’s common label alone. Queensland duty depends on the type of insurance, so check whether the contract is WorkCover or another classified policy.
What should I verify before calculating duty?
Check the insurer’s Queensland Revenue Office rates page and the policy’s PDS. Confirm the policy type, class and the exact premium basis before applying a rate.
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