Thursday, April 8, 2021

Small business Diary, 7 April 2021.

"Dear Nick, 

Thank you for your time last week where we reviewed the attached Policies for  the 2021-2022 Insurance period.

I confirm that all policies are in force for the next 12 months.

Invoice 1426 relates to the Brookvale cover. This policy has increased by $2,200.00 over last year. The Insurers increased the premium $1,136.00 due to the general cost of claims experienced by Insurers over the past twelve months. However, the NSW Government charges added an extra $1,000.00 to the premium which increased the cost as shown..."

Stewart, our insurance broker, is a decent man. We see each other once per year to shake hands over Insurance cover. Stewart loves us: we keep the records straight and honest, we make no claims and we pay our premium in one go. Yes, we take insurance seriously.

Our small business is covered by four policies: public liability, stock, shipping and one which covers the Brookvale manufacturing workshop. The first three premiums are unchanged from the last year, but ironically, it was the manufacturing policy which covers tools and equipment that was hit hard by both sides: the Insurer and NSW Government.  

NSW Emergency Services levy went up by 35% from last year. NSW Stamp duty went up by 20% and combined with base premium increase of 17%, the GST component went up by 20%.                         
Last year, National Insurance Brokers Association (NIBA)  wrote to the NSW Premier and the NSW Treasurer calling on the Government to complete the reform of the Emergency Services Levy. “We made it very clear that we do not need to wait for another Royal Commission to recommend the reform of this unfair and unjust revenue stream”.  It was extremely disappointing to read the Treasurer’s comments. The Government has indicated it intends to collect $1.1 billion from policyholders in the 2020/2021 financial year. This is a massive impost, and will be 45 per cent higher than the amount raised in 2018/2019.

“NIBA will work with the Insurance Council of Australia to keep up the pressure on the NSW Government to follow the lead of the other States and Territories, follow the recommendations of any number of Royal Commissions, reviews and inquiries, and abolish this unfair and unjust levy.”

According to Reserve Bank of Australia ( the average inflation rate sits around 0.7%. Actually, in the June quarter for 2020, for the first time in decades, we had negative inflation (deflation) of 0.3%!
Yet the NSW Government has put their greasy hands in manufacturers pockets mercilessly, hitting us with a 35% increase on Emergency service and 20% on stamp duty.  

To Gladys Berejikian: Darling, you are choking us to death. Please have a mercy on small manufacturers before it’s too late. 

But then again, the more pressure Gladys puts on me, the more determined I remain to keep going on.                         

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