$4 million in insurance savings a win for farmers

$4 million in insurance savings a win for farmers

VFF has praised a Victorian State Government commitment to scrap insurance duties on agricultural products for insurance against flood, fire and other accidental provisions.

The measure, expected to save farmers up to $4 million a year when insuring against damage to crops, livestock, and equipment, will be formally unveiled when the Victorian State Budget is handed down.

“Insurance duty is a pain in the neck for farmers who are also paying GST on their premiums because we’re being forced to pay a tax on a tax,” Victorian Farmers Federation President David Jochinke said.

“The VFF has opposed the duty for years and it’s great to see the Victorian State Government listening to the concerns of farmers because getting rid of insurance duties will relieve an unnecessary financial burden on our primary producers.”

Mr Jochinke said the rising premiums and tight budgets had led some farmers to cut back their insurance policies, but that the new Budget measure would encourage a greater take-up in insurance while saving farmers money to spend on growing their businesses.

“From experience, I can tell you it’s worth protecting your gear against any accidents and under-insuring isn’t an ideal way to manage risk,” he said.

“Reducing the tax burden will encourage farmers to take out a full insurance package without cutting too much into their profit margins.”

Mr Jochinke said the measure would also ensure many farmers who have been doing it tough would be able to have a little more money in their back pockets.

“This policy is a win for the agriculture sector and will restore fairness to our insurance policies,” he said.

“It shows that farmers are being supported so they can keep working to feed Victoria. By getting rid of insurance duty, primary producers will have more affordable options to manage the increasing level of risk they face each year.”