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Australian Terrorism Insurance Scheme

Australian Terrorism Insurance Scheme: Important Changes

Detailed below are the changes ARPC are making to the Australian Terrorism Insurance Scheme, regarding high value mixed use & commercial strata properties.


The Australian Reinsurance Pool Corporation (ARPC) is responsible for collecting a terrorism levy for commercial buildings under the Terrorism Insurance Act 2003.

Recently the ARPC changed how they define a commercial building, which will impact the insurance policies for strata properties valued over $50 million, all commercial properties and mixed use strata’s with a commercial aspect of 20% and above.

The definition of a terrorism exclusion or exception in an (eligible) insurance contract has been amended to include acts described as ``chemical``, ``biological``, ``polluting``, ``contaminating``, ``pathogenic``, poisoning`` or words of similar effect.

Implications (From 1 July 2017)

Mixed-use and residential buildings (as described above) that previously did not attract a terrorism levy will now have to pay an additional premium for this at next renewal (after July 1st, 2017).

Insurers will be required to collect Terrorism Insurance Scheme premiums on behalf of the ARPC


The number of new mixed-use Strata buildings in development have led to amendments being made to this Act

The high volume of modern residential Strata properties that now include commercial tenancies have caused the government to broaden the eligible property definition

These properties are now eligible for compensation payable under the Terrorism Insurance Act

More Information

For more information, the Terrorism Insurance Amendment Regulations 2017 and previous regulation amendments please visit the ARPC Website

If you have any further questions or would like to discuss any of the above, please do not hesitate the KBI Property Team at 08 6467 7999

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