Terrorism and Cyclone Insurance (Premiums) Direction 2019
made under the Terrorism and Cyclone Insurance Act 2003
Compilation No. 1
Compilation date: 1 July 2026
Includes amendments: Terrorism and Cyclone Insurance (Premiums) Amendment (Postcode Update) Direction 2025
Prepared by The Treasury
About this compilation
This compilation
This is a compilation of the Terrorism and Cyclone Insurance (Premiums) Direction 2019 that shows the text of the law as amended and in force on 1 July 2026 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au).
Application, saving and transitional provisions
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. Any modifications affecting the law are accessible on the Register.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part 1—Preliminary
1 Name
3 Authority
5 Definitions
6 Tier A property
7 Tier B property
Part 2—Direction to set premiums that are to be charged by the corporation in respect of contracts of insurance
8 Corporation must charge premium in accordance with specified rates
9 Premium income
Endnotes
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Part 1—Preliminary
1 Name
This instrument is the Terrorism and Cyclone Insurance (Premiums) Direction 2019.
Note: The name of this instrument has been amended. This instrument was previously named the Terrorism Insurance (Premiums) Direction 2019.
3 Authority
This instrument is made under the Terrorism and Cyclone Insurance Act 2003.
5 Definitions
Note: Paragraph 13(1)(b) of the Legislation Act 2003 has the effect that expressions have the same meaning in this instrument as in the Act as in force from time to time.
In this instrument:
amount includes a nil amount.
GST has the meaning given by the A New Tax System (Goods and Services Tax) Act 1999.
premium income has the meaning given by section 9.
reinsured eligible insurance contract means an eligible insurance contract covered by a contract of reinsurance entered into by a party to be reinsured and the Corporation.
the Act means the Terrorism and Cyclone Insurance Act 2003.
Tier A property has the meaning given by section 6.
Tier B property has the meaning given by section 7.
Tier C property is any eligible property located in an area in Australia that is neither a Tier A property nor a Tier B property.
6 Tier A property
A Tier A property is an eligible property located in an area in Australia that has a postcode listed in the following table:
Item | State or Territory | Listed postcodes |
1 | New South Wales | 2000, 2007, 2009, 2060 |
2 | Victoria | 3000, 3006, 3008 |
3 | Queensland | 4000 |
4 | Western Australia | 6000, 6003 |
5 | South Australia | 5000, 5005 |
6 | Tasmania |
|
7 | Australian Capital Territory |
|
8 | Northern Territory |
|
7 Tier B property
(1) A Tier B property is an eligible property located in an area in Australia that has a postcode listed in the following table:
Item | State or Territory | Listed postcodes |
1 | New South Wales | 2006, 2008, 2010, 2011, 2015 to 2050, 2052, 2061 to 2077, 2079 to 2082, 2085 to 2090, 2092 to 2097, 2099 to 2122, 2125 to 2148, 2150 to 2155, 2160 to 2168, 2170 to 2179, 2190 to 2200, 2203 to 2214, 2216 to 2234, 2251, 2256, 2257, 2260 to 2263, 2267, 2280 to 2285, 2287, 2289 to 2300, 2302 to 2308, 2485, 2486, 2500, 2502, 2505, 2506, 2515 to 2519, 2522, 2525, 2526, 2528 to 2530, 2557 to 2559, 2564 to 2567, 2619, 2747, 2749, 2750, 2759 to 2763, 2765 to 2770, 2773, 2774, 2776, 2777 |
2 | Victoria | 3002 to 3004, 3010 to 3013, 3015, 3016, 3018 to 3023, 3025 to 3034, 3036 to 3062, 3064 to 3068, 3070 to 3076, 3078, 3079, 3081 to 3091, 3093 to 3096, 3101 to 3109, 3111, 3113, 3114, 3116, 3121 to 3138, 3140 to 3156, 3158 to 3163, 3165 to 3175, 3177 to 3202, 3204 to 3207, 3214 to 3216, 3218 to 3220, 3335, 3336, 3350, 3355, 3356, 3358, 3550, 3555, 3752, 3754, 3765 to 3767, 3782, 3785 to 3789, 3791 to 3793, 3796, 3800, 3802 to 3807, 3810, 3910 to 3913, 3915, 3918, 3919, 3927, 3911, 3930, 3931, 3934, 3936, 3938, 3940 to 3944, 3975 to 3977 |
3 | Queensland | 4005 to 4014, 4017 to 4022, 4029 to 4032, 4034 to 4037, 4051, 4053 to 4055, 4059 to 4061, 4064 to 4070, 4072 to 4078, 4101 to 4125, 4127 to 4133, 4151 to 4161, 4163 to 4165, 4169 to 4174, 4178, 4179, 4205, 4207, 4209, 4210, 4212 to 4218, 4220 to 4227, 4229, 4230, 4271, 4300, 4301, 4303 to 4305, 4350, 4500 to 4506, 4508 to 4510, 4513, 4551, 4556 to 4558, 4564, 4566, 4567, 4572, 4573, 4575, 4810, 4812, 4814, 4868 to 4870, 4878, 4879 |
4 | Western Australia | 6004 to 6012, 6014 to 6031, 6034, 6036, 6038, 6050 to 6066, 6069, 6070, 6072, 6073, 6090, 6100 to 6110, 6112, 6122, 6147 to 6160, 6162 to 6175, 6180, 6209, 6210 |
5 | South Australia | 5006 to 5025, 5031 to 5035, 5037 to 5052, 5061 to 5070, 5072 to 5076, 5081 to 5098, 5106 to 5113, 5115, 5125 to 5127, 5140, 5150, 5158 to 5170, 5173, 5950, 5960 |
6 | Tasmania | 7000, 7004, 7005, 7007 to 7011, 7015, 7018, 7019, 7021, 7050, 7052, 7053, 7055, 7170 |
7 | Australian Capital Territory | 2600 to 2607, 2609, 2612, 2614, 2615, 2617, 2902 to 2906, 2911 to 2914 |
8 | Northern Territory | 0800, 0810, 0812, 0815, 0820, 0828, 0832 |
Existing area divided into more than one new area and allocated new postcode
(2) If:
(a) an area in Australia has a postcode listed in the table in subsection (1); and
(b) the Australian Postal Corporation:
(i) divides the area into 2 or more new areas; and
(ii) allocates a new postcode to each new area;
then each eligible property located in each new area is a Tier B property.
New or existing postcode allocated to increased area
(3) If:
(a) an area in Australia has a postcode listed in a table in either section 6 or 7; and
(b) the area has a population of greater than 100,000 people; and
(c) the area increases; and
(d) the Australian Postal Corporation allocates:
(i) the increased area a new postcode; or
(ii) an existing postcode to the part of the area that increased;
then each eligible property located in the area is a Tier B property.
(4) In working out whether an area has a postcode for the purposes of paragraph (3)(a), treat any postcode previously covered by subparagraphs (2)(b)(ii) or (3)(d)(i) as being listed in the table in subsection (1).
Part 2—Direction to set premiums that are to be charged by the corporation in respect of contracts of insurance
8 Corporation must charge premium in accordance with specified rates
(1) Under section 38 of the Act, the Corporation is directed to charge a premium for a reinsured eligible insurance contract as set out, for the type of cover provided by the eligible insurance contract, in the following table:
Item | Type of cover | Premium to be charged for a reinsured eligible insurance contract |
1 | Loss of, or damage to, eligible property that is owned by the insured | (a) for an eligible insurance contract covering Tier A property—16% of the premium income; and (b) for an eligible insurance contract covering Tier B property—5.3% of the premium income; and (c) for an eligible insurance contract covering Tier C property—2.6% of the premium income. |
2 | Business interruption and consequential loss arising from: (a) loss of, or damage to, eligible property that is owned or occupied by the insured; or (b) inability to use eligible property, or part of eligible property, that is owned or occupied by the insured | (a) for an eligible insurance contract covering Tier A property—16% of the premium income; and (b) for an eligible insurance contract covering Tier B property—5.3% of the premium income; and (c) for an eligible insurance contract covering Tier C property—2.6% of the premium income. |
3 | Liability that arises out of the insured being the owner or occupier of eligible property | 0% of the premium income. |
9 Premium income
(1) The premium income for an eligible insurance contract is worked out as follows:
Method statement
Step 1. Work out the amount of the premium written by the party to be reinsured (the reinsured) that is attributable to the eligible insurance contract.
Step 2. Reduce the result from Step 1 by that part of the result that relates to a premium that has been refunded to the reinsured as result of any adjustment or cancellation related to the eligible insurance contract.
Step 3. Reduce the result from Step 2 by that part of the result that is attributable to GST, or a stamp duty or fire services levy (however described) imposed on the eligible insurance contract under a law of a State or Territory. The result is the premium income.
(2) However, if an eligible insurance contract:
(a) comprises 2 or more distinct insurance covers that have been packaged or bundled together; and
(b) is offered on the basis that the insured must take out one or more of the insurance covers offered; and
(c) has a precisely quantifiable premium that can be attributed to each insurance cover that has been packaged or bundled together; and
(d) that contains, both:
(i) some insurance covers, each of which if provided individually, would be an eligible insurance contract; and
(ii) other insurance covers, none of which, if provided individually, would be an eligible insurance contract;
then, apply the method statement in subsection (1) to only that part of an eligible insurance contract that provides insurance covers that, if provided individually, would be an eligible insurance contract.
Endnotes
Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.
The following endnotes are included in every compilation:
Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history
Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.
Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.
The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.
The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.
Misdescribed amendments
A misdescribed amendment is an amendment that does not accurately describe how an amendment is to be made. If, despite the misdescription, the amendment can be given effect as intended, then the misdescribed amendment can be incorporated through an editorial change made under section 15V of the Legislation Act 2003.
If a misdescribed amendment cannot be given effect as intended, the amendment is not incorporated and “(md not incorp)” is added to the amendment history.
Endnote 2—Abbreviation key
ad = added or inserted | orig = original |
am = amended | p = page(s) |
amdt = amendment | para = paragraph(s)/subparagraph(s) |
C[x] = Compilation No. x | /sub‑subparagraph(s) |
ch = Chapter(s) | pres = present |
cl = clause(s) | prev = previous |
cont. = continued | (prev…) = previously |
def = definition(s) | pt = Part(s) |
Dict = Dictionary | r = regulation(s)/Court rule(s) |
disallowed = disallowed by Parliament | reloc = relocated |
div = Division(s) | renum = renumbered |
exp = expires/expired or ceases/ceased to have | rep = repealed |
effect | rs = repealed and substituted |
gaz = gazette | s = section(s)/subsection(s) |
LA = Legislation Act 2003 | /rule(s)/subrule(s)/order(s)/suborder(s) |
LIA = Legislative Instruments Act 2003 | sch = Schedule(s) |
(md not incorp) = misdescribed amendment | SLI = Select Legislative Instrument |
cannot be given effect | SR = Statutory Rules |
mod = modified/modification | sub ch = Sub‑Chapter(s) |
No. = Number(s) | sub div = Subdivision(s) |
Ord = Ordinance | sub pt = Subpart(s) |
| underlining = whole or part not |
| commenced or to be commenced |
Endnote 3—Legislation history
Name | Registration | Commencement | Application, saving and transitional provisions |
Terrorism Insurance (Premiums) Direction 2019 | 30 January 2019 (F2019L00069) | Section 1 to 3: 31 January 2019 Sections 4 to 10 and Schedule 1: 1 July 2019 | — |
Treasury Laws Amendment (2019 Measures No. 3) Act 2020 | Royal Assent: 22 June 2020 | 1 October 2020 | Item 325 in Schedule 3 to the Act – instrument continues in force (and may be dealt with) as if it had been made under, or for the purposes of, the Act as amended. As a result the instrument ceased being a legislative instrument and became a notifiable instrument (F2025N00873). |
Terrorism and Cyclone Insurance (Premiums) Amendment (Postcode Update) Direction 2025 As amended by Terrorism and Cyclone Insurance (Premiums) Amendment (Delayed Commencement) Direction 2025 | 6 November 2025 (F2025N00841) | 1 July 2026 | — |
Endnote 4—Amendment history
Provision affected | How affected |
s 1 s 2 | rs F2025N00841 rep s48D LA |
s 3 s 4 s 5 s 6 s 7 | rs F2025N00841 rep s48C LA am F2025N00841 am F2025N00841 am F2025N00841 |
Schedule 1 | rep s48D LA |
|
|