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Liberals commit to waiving stamp duty for farming insurance

The State Liberals will waive stamp duty for farmers purchasing multi-peril crop insurance (MPCI) if elected to government in 2018.

State Liberal Leader Steven Marshall made the commitment while visiting the Port Pirie region.

MPCI is an insurance scheme that protects farmers against a multitude of perils including drought and frost.

A farmer takes out an MPCI policy against the cost of producing a crop; if the crop fails due to a prescribed event (e.g. drought to frost), the insurer pays out on the farmer’s claim.

This means that they are able to at least break-even should their crop fail.

Currently, South Australian farmers pay an 11 per cent stamp duty on insurance premiums.

“Waiving stamp duty for farmers who purchase MPCI will increase the affordability of MPCI and incentivise SA farmers to take up this scheme,” said State Liberal Leader Steven Marshall.

“There are a number of economic, community and social benefits that arise from farmers carrying MPCI.

“With MPCI, a farmer is better position to plant their crops with the safety net of knowing that they will be able to break even if the crop fails due to a range of events beyond their control.

“By making farming operations more financially secure, this will ensure a more consistent cash flow into regional communities and fewer bankrupt farmers.

“On a more personal level, the security of MPCI can reduce financial stress and in turn have positive effects on farmers’ mental health.

“As part of our 2036 policy manifesto, we committed to growing our economy and strengthening our communities.

“This policy does exactly that.

“Our regional areas are a major driver of our economy – from primary production and farming to the mining industry, we understand that South Australia needs its regional industries to thrive, create jobs and boost our economy.”