Yes—for the APRA-reportable part of a contract classified in the public and product liability class, a contract effected or renewed from 1 July 2026 to 30 June 2027 carries a 7% duty rate. The State Revenue Office guidance, updated 1 July 2026, lists public and product liability as a specified class and sets the rate for that period, but the relevant premium must still be classified correctly.
Figures checked 1 October 2026.
Does the 7% rate apply to every Victorian public liability policy?
No. Only general insurance within specified classes under APRA’s Prudential Standard is treated as business insurance for the reduction. Public and product liability is one specified class, but the policy’s classification and the treatment of any packaged cover still matter.
| Premium classification | State Revenue Office treatment |
|---|---|
| Specified-class business insurance effected or renewed from 1 July 2026 to 30 June 2027 | 7% duty rate |
| General insurance that is not business insurance | 10% duty rate |
| Packaged contract containing specified-class and other cover | The premium must be apportioned; the specified-class parts receive the applicable reduced rate and other parts remain at 10% |
Other Prudential Standard classes—including householders, commercial motor, travel and mortgage—are not business insurance for this change. An insurance kind not named in the Prudential Standard may still qualify if the insurer must report its premium to APRA under a specified class.
There is also a specific public liability exception. On 20 June 2024, the Treasurer declared that public liability insurance attaching to householder policies would not be business insurance from 1 July 2024. That cover therefore does not qualify for the 7% business-insurance rate.
Does the premium payment date determine whether duty is 7%?
No. The State Revenue Office says the rate is determined by the date the contract is effected or renewed, not the date the premium is paid. The reduced rate applies automatically, so a cleaning business does not need to submit an application to receive it.
The 7% rate is part of the phased abolition of business-insurance duty. The rate reduces by 1% each financial year and is 0% for contracts effected or renewed on or after 1 July 2033.
What happens if a policy includes several types of insurance?
A specified class can form either a single contract or part of a packaged contract. If some premium parts must be reported to APRA under specified classes and others do not, the premium must be apportioned.
For example, the State Revenue Office’s rural and working farm example separates:
- Fire and industrial special risks and public and product liability as specified classes, subject to the applicable reduced rate.
- Householders and domestic motor as other classes, subject to 10% duty.
A cleaner should therefore not assume that every part of a combined liability policy receives the same rate simply because the policy includes public liability.
What duty rate applies after an endorsement?
For a premium increase caused by an endorsement, the applicable rate depends on the endorsement’s effective date.
In the State Revenue Office example:
- The original contract was effected on 1 February 2026 and premium was subject to 8% duty.
- An endorsement effective on 1 July 2026 added business insurance and increased the premium.
- Duty on the increased premium was charged at 7%, the rate applying on that endorsement date.
This means the original premium and the endorsement increase can attract different rates.
What happens to duty 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 for which duty has been paid. For business insurance, the refund corresponds to the original duty paid on the premium amount refunded.
The refund is calculated using the date the contract was effected or renewed, not the cancellation date. In the State Revenue Office 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%.
What should a cleaner check before relying on the 7% rate?
- Check the State Revenue Office guidance to determine whether the insurance falls within a specified APRA class.
- Read the policy’s PDS and check whether public liability is combined with other types of cover.
- Ask the insurer or broker to confirm how any packaged premium has been apportioned.
- Check the contract’s effected or renewed date and the effective date of any endorsement.
- Check Victorian Government Gazette declarations, which can specify whether insurance within a class is treated as business insurance.
The State Revenue Office also identifies Revenue Ruling DA-068 as detailed guidance on applying the duty reduction.
This is general information, not financial or legal advice. Check the regulator page and your policy’s PDS before relying on a particular rate or classification.
Sources
FAQ
Does the date I pay the premium determine the duty rate?
No. For business insurance, the applicable rate follows the date the contract is effected or renewed. The premium payment date does not change it.
Does every policy described as public liability qualify for the reduced rate?
No. Public and product liability is a specified class, but the premium must be classified correctly. Declarations, APRA reporting requirements and exceptions such as public liability attached to householder policies can affect the treatment.
Can one policy have more than one duty rate?
Yes. A packaged contract may contain both specified-class business insurance and other general insurance. The premium must be apportioned, with the reduced rate applying to the relevant business-insurance parts.
What should I confirm with my insurer?
Confirm the APRA class, whether the premium is APRA-reportable, how packaged cover has been allocated, the contract’s effected or renewed date, and the effective date of any endorsement.
Partner links. Using them costs you nothing extra and may earn us a commission.