Federal Treasury wants to abolish a range of state and territory taxes worth $4.4 billion - but there's no sign it will propose such a move for taxes on insurance.
ICA spokesperson Rod Frail told Sunrise Exchange News insurance wasn't on the list of abolished taxes signed in the 1999 intergovernmental agreement.
Now the move to curb the states' fiscal excesses may make it even harder for the industry to push the insurance taxes issue on to the Federal Government's agenda.
"We'll keep on plowing on with the tax issue, but it is difficult because the issue is outside the Government's current taxation priorities."
The mainstream media and consumer bodies have recently taken more notice of insurance taxes, which Mr Frail says is good news for the industry.
The Australian Consumers' Association has achieved some media attention for the issue, with Policy Officer Catherine Wolthuizen telling Melbourne's Herald Sun yesterday that taxes "reduce the affordability and, for some people... make the difference as to whether they take it out or not".
Watch out for UFOs – or insure against abduction
The Australian Consumers' Association (ACA) has published a list of "junk insurance", which details a range of bizarre insurance policies on the market.
Cover against alien abductions, space travel and crocodile attacks are some of the stranger policies listed, but the ACA also includes less unusual types of cover, for which it warns consumers to "read the fine print".
Mobile phone insurance is one such example. The ACA warns consumers "exclusions and fine print can prevent you from making claims in many situations".
Pet insurance also makes the list, with the ACA warning it can be expensive and cover can be limited.
As an alternative to crocodile attack insurance, the ACA suggests life insurance as a serious option. But for only $10 the Territory Insurance Office will issue a policy with a picture of a rabid-looking crocodile chewing on a tree.
No-fault compo package on its way, says NSW
The NSW Government's proposed no-fault compensation scheme for catastrophically injured people is on its way, but the details about who it will apply to and how it will be funded are still being worked out.
In February Premier Bob Carr announced he would propose a no-fault package to provide compensation for the hundreds of catastrophically injured people who can't make claims because of restrictions imposed by the tort reform process.
While the state wouldn't back down from finishing the tort reform process, he said a no-fault scheme will ensure "regardless of fault, those [catastrophically injured] people are looked after".
Disability Services Minister and Assistant Treasurer John Della Bosca is handling the scheme. Spokesperson Andrew Plumley told Sunrise Exchange News while the Government "isn't ready to make an announcement about no-fault schemes", progress has been made on the issue.
"A lot has happened, but we're still working on a package and considering who it applies to and how it is funded et cetera," he said.
Mr Plumley wouldn't say whether the proposed scheme has yet been considered by the NSW Cabinet.
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