Victorian Electrical Contractor Public Liability Duty 2026-27: Is It 7%?

Yes—according to the State Revenue Office’s guidance updated 1 July 2026, the duty rate is 7% for the APRA-reportable premium part under a public and product liability business-insurance contract effected or renewed from 1 July 2026 to 30 June 2027. The State Revenue Office says the reduction applies automatically, while public liability attaching to householder insurance policies has not been business insurance since 1 July 2024. Figures checked 1 October 2026.

What does the 7% duty rate actually apply to?

The 7% applies to the relevant premium part, not automatically to every part of an electrical contractor’s policy.

For this change, business insurance means general insurance falling within specified classes under the Australian Prudential Regulation Authority’s (APRA) Prudential Standard. Public and product liability is one of those specified classes.

The relevant premium must therefore be:

• within a specified class;
• reportable by the insurer to APRA; and
• part of a contract of business insurance.

Other Prudential Standard classes, including householders, commercial motor, travel and mortgage, are not business insurance for this change. An insurance type not listed in the Prudential Standard may still qualify if the insurer must report its premium to APRA under a specified class.

When is the applicable duty rate determined?

The State Revenue Office says the rate is determined by the date the relevant contract is effected or renewed, not the date the premium is paid. Paying a premium during the 2026-27 financial year therefore does not, by itself, put an older contract at 7%.

If an endorsement adds business insurance and increases the premium, the increased premium is rated using the endorsement’s effective date. In the State Revenue Office’s example, a premium increase endorsed effective on 1 July 2026 attracts 7% duty.

The full business-insurance duty schedule is:

The general duty rate for insurance outside the phased business-insurance change remains at 10%.

Does an electrical contractor need to apply for the reduction?

No. The State Revenue Office says the reduced rate applies automatically and businesses do not need to apply to receive it.

The contractor still needs to confirm that the relevant premium is correctly classified. The policy’s structure, APRA reporting class, contract dates and any packaged-policy allocation can affect the treatment.

Does a packaged policy get one 7% rate?

Not necessarily. If a packaged contract includes some premium parts that must be reported to APRA under specified classes and other parts that are not business insurance, the premium must be apportioned.

For the 2026-27 period:

This means the entire package is not automatically treated as business insurance merely because it includes public liability cover.

Is public liability attached to householder insurance also rated at 7%?

No. On 20 June 2024, the Treasurer declared that public liability insurance attaching to householder insurance policies would not be business insurance from 1 July 2024. Although that cover falls within the public and product liability class, the declaration prevents it from receiving the phased reduction.

Because general insurance that is not business insurance remains subject to 10% duty, the relevant householder-policy part does not qualify for the 7% rate. The important distinction is how the public liability attaches to the contract, not simply whether the policy contains public liability wording.

What should be checked before relying on the 7% rate?

Before treating the duty rate as 7%, check:

• the date the relevant contract was effected or renewed;
• the effective date of any endorsement that adds business insurance;
• whether the premium is APRA-reportable under a specified class;
• whether the policy is packaged and requires apportionment;
• whether public liability attaches to a householder insurance policy; and
• how the insurer has treated the premium under the policy and its Product Disclosure Statement (PDS).

The State Revenue Office also identifies Revenue Ruling DA‑068 as detailed guidance on applying the reduction.

This is general information, not financial or legal advice. Check the official State Revenue Office page and your policy’s PDS, and ask the insurer to confirm the classification and any premium apportionment.

Sources

• Abolition of duty on business insurance premiums | State Revenue Office

FAQ

Is every Victorian electrician public liability policy subject to 7% duty in 2026-27?

No. The State Revenue Office’s 7% rate applies to the relevant APRA-reportable public and product liability premium under a business-insurance contract effected or renewed during the stated period. It does not automatically apply to other classes, non-business premium parts or public liability attaching to householder policies.

Does paying the premium in 2026-27 make an older policy subject to 7% duty?

No. The State Revenue Office says the contract’s effected or renewed date determines the rate; the premium payment date does not change it.

Does an endorsement always move the whole policy to the endorsement-date rate?

No. When an endorsement adds business insurance and increases the premium, the endorsement’s effective date determines the rate for that increased premium.

Does an electrical contractor need to apply for the reduced duty rate?

No. The State Revenue Office says the reduction applies automatically. The contractor should still verify the APRA classification and the way any packaged premium has been apportioned.