Does a 1 July 2026 Victorian endorsement use 7% or 8% duty?

Use 7% for the business-insurance premium increase in the supplied example. The State Revenue Office’s guidance, updated 1 July 2026, says the original contract effected 1 February 2026 was rated at 8%, while duty on the increase caused by an endorsement effective 1 July 2026 is charged at 7% because the endorsement’s effective date determines the rate for that increase.

Figures checked 1 October 2026.

What does the 7% duty apply to?

The two rates apply to different parts of the premium:

The example treats 7% as the duty payable on the increased premium, not as a replacement rate for the whole policy. The added premium is rated from the endorsement’s effective date; it does not change the 8% rate that applied when the original contract was effected.

Why does the endorsement date control the increase?

The general rule is that the duty rate for a business-insurance contract is determined by the date the contract is effected or renewed. The date the premium is paid does not affect that rate.

An endorsement that increases the premium has its own timing rule: the applicable duty rate depends on the endorsement’s effective date. That is why the increase introduced on 1 July 2026 attracts 7% duty even though the contract itself was effected on 1 February 2026, when the rate was 8%.

Where do 7% and 8% fit in Victoria’s timetable?

For business insurance, the Victorian phased reduction operates as follows:

That timetable explains the 8% contract rate and the 7% endorsement rate in the example. However, the reduction does not apply to every general-insurance premium. Duty remains at 10% where the premium or part-premium relates to general insurance that is not business insurance.

Does every part of an endorsed policy get 7%?

No. The reduced rates apply only to the business-insurance premium parts that fall within specified classes under APRA’s Prudential Standard.

Those classes are:

• aviation;
• cyber, from 1 January 2025;
• directors and officers (D&O), from 1 January 2025;
• employers’ liability;
• fire and industrial special risks (ISR);
• marine;
• public and product liability; and
• professional indemnity.

An insurance kind not listed in the Prudential Standard may still qualify where the insurer must report its premium to APRA under one of those specified classes. Other classes, including householders, commercial motor, travel and mortgage, are outside this business-insurance change.

The treatment also applies when the specified insurance forms part of a packaged contract. If a package contains both qualifying business insurance and other general insurance, the premium must be apportioned. The decreasing rates apply to the APRA-reportable specified-class parts, while the other parts remain rated at 10%.

The Treasurer may make declarations about the treatment of business insurance through the Victorian Government Gazette. For example, public liability insurance attaching to householder policies was declared not to be business insurance from 1 July 2024.

What happens if the premium is refunded later?

A premium refund is treated differently from an endorsement increase. If an insurer refunds all or part of a dutiable premium for which duty has been paid, it is entitled to a corresponding duty refund.

For business insurance:

• the refund corresponds to the original duty paid on the premium amount refunded;
• it is calculated using the date the contract was effected or renewed, not the cancellation date; and
• it does not change merely because the refund occurs during a later duty period.

The State Revenue Office’s refund example uses a contract effected on 1 January 2026 at 8%. Although part of the premium was refunded on 1 July 2026, the duty refund remained calculated at 8%.

What should you check on your own policy?

Before relying on 7%, check:

• the endorsement’s stated effective date;
• whether the added cover is business insurance within a specified APRA class;
• whether the premium must be apportioned because the contract is packaged;
• whether any later refund follows the original contract rate; and
• the wording of the endorsement and the policy’s Product Disclosure Statement.

The reduction applies automatically, so a business does not need to apply for the reduced rate. The State Revenue Office also identifies Revenue Ruling DA-068 as detailed guidance on applying the reduction.

This is general information, not financial or legal advice. Check the State Revenue Office page and your policy’s PDS before applying the rate to a particular contract or endorsement.

Sources

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

FAQ

Does every endorsement effective 1 July 2026 use 7% duty?

Not necessarily. In the supplied example, 7% applies to the increased premium where the endorsement adds business insurance within the relevant APRA class. Premium parts that are not business insurance remain subject to 10% duty.

Why was the original contract rated at 8%?

The contract was effected on 1 February 2026, within the period from 1 July 2025 to 30 June 2026, when the business-insurance duty rate was 8%.

Does the premium payment date determine the rate?

No. The contract rate is determined by when the contract is effected or renewed. For an endorsement-related premium increase, the endorsement’s effective date determines the applicable rate.

Does the original 8% rate apply to the endorsement increase?

No. The example applies 8% to the original premium and 7% to the increase caused by the endorsement effective 1 July 2026.