Paying Premium
How do I pay my insurance premium?
The policy renewal period will take place from early September, with the first insurance premium payments due on 1 October. There are a variety of options available to pay your insurance premium. You can choose to pay your insurance premium either as a one-off payment in advance, or in instalments.
Pay in full to receive a 3% discount
If you pay the full amount at policy renewal, you can take advantage of a 3% discount. To obtain the discount, you need to pay the discounted insurance premium and any outstanding amounts for prior years by 1 October. If you are paying the minimum insurance premium (including GST), you are not eligible for the discount.
Paying quarterly
If you are on the quarterly plan, you must pay the instalments by the first day of October, December, March and June.
Paying monthly
If you choose the monthly instalment plan, payment is due in 10 instalments on the first day of the month, starting on October 1st and ending on July 1st.
Insurance premium under $1,000
If your insurance premium is $1,000 or less you must pay the full amount by 1 November.
Late payment penalties
It is important to remember that late payments will attract a penalty. The late payment penalty is calculated at the relevant rate provided for in section 25 of the Taxation Administration Act 1997. Should you not make the required payment by the due date, your instalment plan may also be cancelled making the remaining insurance premium for the whole year due immediately.
Goods and Services Tax
Your insurance premium is subject to the Goods and Services Tax (GST). The majority of businesses can claim all or part of the GST from the Australian Tax Office (ATO) as an input tax credit. GST is added after the insurance premium has been calculated.
Details of the amounts that you may be able to claim from the ATO are on the back of the invoice.
If you pay your insurance premium by 1 October, the invoice becomes a tax invoice for the discounted renewal amount. Otherwise, it is a tax invoice for the instalment amount. If you pay by instalment, the invoices issued to you during the year are also tax invoices for GST purposes.
