Amending the tax law to reduce compliance costs for general insurers

The Government will introduce legislation to amend the tax law to minimise the regulatory burden facing the general insurance industry. The introduction of the new accounting standard, AASB17 Insurance Contracts, by the Australian Accounting Standards Board, has meant that the tax law is no longer aligned with accounting standards. This change to the tax law will allow general insurers to continue to use audited financial reporting information, which is calculated according to the new standard, as the basis for their tax returns. The measure will have effect for income years commencing on or after 1 January 2023. This measure is estimated to result in an unquantifiable impact on receipts over the 5 years from 2022-23. Treasury |