Managing the GST change

As you will be aware, the Goods and Services Tax (GST) will rise from 12.5% to 15% from 1 October 2010.

As a general rule all Lumley policies with a closing/ placing slip date on or after 1 October 2010 will be at the new GST rate of 15%.

While this change is being reflected across the market, the internal 'rules' each underwriter is applying to the treatment of GST post 1 October may differ.

At Lumley we have worked hard to make this change as easy as possible for our Brokers.

Our business rules to manage the GST change have been checked by external advisors and are consistent with the advice being communicated by IBANZ.

All our systems and processes are set up and ready to calculate the new rate of GST from 1 October 2010, and we have updated our collateral where appropriate.

We understand that in the few weeks following the GST change there might be policies, quotes or claims that come through at the old GST rate. So we have adopted a flexible approach and we will be able to process your business regardless to keep everything moving.

We have provided an information sheet for you to use as a reference if you would like to check how Lumley will be approaching the application of GST in different scenarios.

If you have any further questions, you are welcome to contact your Account Manager or the Lumley GST team on GSTenquiries@lumley.co.nz .