When you buy a green slip, do you wonder where your money goes? Around two thirds of a green slip premium goes directly to people who make green slip claims. The rest goes to the insurers, the Fund Levy, GST and other expenses of the Compulsory Third Party green slip scheme.
How is my green slip premium spent?
Here’s a rough guide to how an average NSW green slip premium of $632 is spent.
First, $211 of it goes to GST and the Fund Levy.
- $42 GST
- $169 Fund Levy
- $211 Total charges
Second, $421 is the actual green slip premium broken down into:
- $29 (7%) insurer profit (SIRA AR 2025)
- $265 (63%) for claimants.
- $127 (30%) other expenses
- $421 Total premium
This means $265 or 63% of the average premium goes directly to people who claim.
Figures are based on the State Insurance Regulatory Authority (SIRA) Annual Report 2025, and an average green slip premium. They should be taken only as a guide.
What is GST?
GST is a 10% goods and services tax paid on the insurer share of the green slip premium only. You don’t pay GST on the Fund Levy. Find the GST amount under 12 months price breakdown on your results page in the green slip calculator.
What’s the Fund Levy?
The Fund Levy is an extra amount paid on top of the insurer premium. It pays for the Lifetime Care and Support scheme for people who are catastrophically injured in road crashes. It also pays for ambulance and hospital costs and for SIRA, the CTP regulator.
Is insurer profit always 7%?
No, before reform in 2017 insurer profit was 19% of the green slip premium. SIRA has several times used the ‘clawback mechanism’ to reduce insurer profit. Insurers now have a better idea of the cost of claims under the reformed scheme so profits are lower.
How can I get my green slip premium down?
The best way to get your green slip premium down is to affect the factors insurers use to set prices.
The second way to get your premium down is to compare prices from all 6 CTP green slip insurers. That way you know you’re getting the cheapest price.
What’s the average price of CTP in Australia?
The average price of a CTP in NSW is $632, compared to:
- $534 in Victoria
- $406 in Queensland
- $401 in the ACT
- $266 in South Australia.
Each state and territory has its own CTP scheme www.ctpinsurance.com.au so prices and benefits under each scheme vary a lot.
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