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Terrorism Levy Changes

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The Australian Reinsurance Pool Corporation (ARPC) has made changes to the regulations for some properties which renew after 1st July 2017.



These changes will require terrorism insurance cover [‘Terrorism Levy’] for the following buildings:

  • Residential buildings with a sum insured over $50,000,000.  This includes residential strata complexes.


  • Properties with a commercial floor space over 20% (this has been reduced from 50%).  

This levy is mandated by the Terrorism Insurance Act 2003:  there are no provisions for opting out. 

The Terrorism Levy will be calculated under a tiered system, based on the location of the building:





Capital City CBD








To find the rateable zone applicable to your building’s post code, visit Australian Reinsurance Pool Corporation website here.

The rate will be applied as a percentage of the building premium. 

Effected properties should factor in an allowance for the new terrorism rates required by this  legislation, when budgeting for their insurance renewal. 

There are currently no requirements for residential buildings with a sum insured under $50,000,000 or properties with a floor space less than 20% to have terrorism insurance, although there are many instances where insurers do provide terrorism cover.

If you have any specific concerns about terrorism insurance cover for your building we recommend speaking with your insurance adviser.

Strata Insurance Solutions believe that despite the additional premium applying, the changes are welcome to protect the assets of Australian investors and we have personally lobbied government to come up with a solution for to cover terrorism, particularly given the changes to threat levels in recent times. 


This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisernet Australia AFSL No 240549, ABN 15 003 886 687.

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