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Commonwealth legislation
This Act has been repealed and is no longer in force. It is retained for historical reference.
This Direction sets the premiums insurers must pay the Australian Reinsurance Pool Corporation for government-backed terrorism cover, dividing Australia into three postcode-based risk tiers. Property damage and business interruption cover are charged at 12% (highest-risk CBDs), 4% (medium-risk areas) or 2% (lowest-risk areas); public liability is not charged.
It applies to each eligible reinsured policy and aims to align insurer contributions with location-based risk to keep the scheme sustainable and insurance available.
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Direct links to the current provisions in Treasurer to Australian Reinsurance Pool Corporation (Premiums) Direction 2003.
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
TERRORISM INSURANCE ACT 2003
Treasurer to Australian Reinsurance Pool Corporation (Premiums) Direction 2003
I, Peter Costello, Treasurer, give this written direction to the Australian Reinsurance Pool Corporation under s.38(2)(d) of the Terrorism Insurance Act 2003 (the Act).
Dated 30 September 2003
PETER COSTELLO
Treasurer
This Direction is the Treasurer to Australian Reinsurance Pool Corporation (Premiums) Direction 2003.
This Direction commences when it is made.
In this Direction:
Corporation means the Australian Reinsurance Pool Corporation.
Premium income means the gross base premium written by a person (the Reinsured) during the period of a contract of reinsurance with the Corporation in respect of eligible insurance contracts less only returned premiums and cancellations. The calculation of gross base premium shall not include the Fire Service Levy, GST and Stamp Duty.
Tier A property means eligible property within the Postcode List for Tier A set out in Schedule 1.
Tier B property means eligible property within the Postcode List for Tier B set out in Schedule 1.
Tier C property includes eligible property within the Postcode List for Tier C set out in Schedule 1 and also includes eligible property that is not within a postcode set out in Schedule 1.
Note: Some terms in this Direction, for example, eligible insurance contract and eligible property, have the same meaning as in the Act.
The Corporation is to charge a premium in respect of each eligible insurance contract that is covered under a contract of reinsurance entered into between the Corporation and the Reinsured in accordance with the rates specified in the following Table.
TABLE
| Class of Insurance | Rate |
|---|---|
| Loss of, or damage to, property (s.7(1)(a) of the Act) | |
| - Tier A property | 12% of premium income |
| - Tier B property | 4% of premium income |
| - Tier C property | 2% of premium income |
| Business Interruption (s.7(1)(b) of the Act) |
| - Tier A property | 12% of premium income |
| - Tier B property | 4% of premium income |
| - Tier C property | 2% of premium income |
| Public Liability (s.7(1)(c) of the Act) | Nil |
<table cellspacing="0" cellpadding="0" style="width:468.7pt; border:0.75pt solid #000000; border-collapse:collapse"><tbody><tr style="height:18pt"><td colspan="7" style="width:457.15pt; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="text-align:center"><span style="font-family:Arial, sans-serif; font-weight:bold">SCHEDULE 1</span></p></td></tr><tr style="height:12.75pt"><td colspan="2" style="width:119.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif; font-weight:bold">Tier A Postcodes</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif; font-weight:bold"></span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif; font-weight:bold"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif; font-weight:bold"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif; font-weight:bold"></span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif; font-weight:bold"></span></p></td></tr><tr style="height:12.75pt"><td style="width:54.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td></tr><tr style="height:12.75pt"><td style="width:54.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2000</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2060</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">3005</span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">3008</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">5000</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">6003</span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td></tr><tr style="height:12.75pt"><td style="width:54.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2009</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">3000</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">3006</span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">4000</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">6000</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td></tr><tr style="height:12.75pt"><td style="width:54.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td></tr><tr style="height:12.75pt"><td colspan="2" style="width:119.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif; font-weight:bold">Tier B Postcodes</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td></tr><tr style="height:12.75pt"><td style="width:54.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif"></span></p></td></tr><tr style="height:12.75pt"><td style="width:54.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">800</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2064</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2122</span></p></td><td style="width:67.15pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2193</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2285</span></p></td><td style="width:54.2pt; border:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">2761</span></p></td><td style="width:54.2pt; border-top:0.75pt solid #000000; border-left:0.75pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.03pt; padding-left:5.03pt; vertical-align:top"><p style="font-size:10pt"><span style="font-family:Arial, sans-serif">3045</span></p></td></tr><tr style="height:12.75pt"><td style="width:54.2pt; border-top:0.75pt solid #000000; border-right:0.75pt solid #000000; border-bottom
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