Emergency Services Property Levy could be introduced

The NSW government is currently proposing to abolish the Emergency Services Levy, which is paid by those with insurance policies, and replace it with the Emergency Services Property Levy (ESPL).

If the proposal proceeds, the ESPL would be paid by all property owners, collected by council alongside rates, and calculated based on land valuations.

The levy helps fund Fire and Rescue NSW, NSW Rural Fire Service and the NSW State Emergency Service.

Dubbo Regional Council interim general manager Mark Riley said the new levy will be introduced if the Emergency Service Levy Bill 2016 is passed. It’s currently proposed that the Bill will be introduced in the first quarter of 2017.

“Some of the proposals are: council will still collect the ESPL on behalf of the government, the new levy will be listed as a separate line item on rates notices, the levy will be based on unimproved land values, there’ll be different rates for different property sectors, and the ESPL will be transferred to the Office of Sate Revenue,” Mr Riley said.

According to the NSW government the new levy was a “fairer model” for funding fire and emergency services as the burden would no longer fall only on those who had property insurance.

An operating procedures manual on the levy for local government said: “the reform will also reduce the cost of insurance and encourage more people to insure their properties”.

“The most recent data from the Australian Bureau of Statistics indicated 36 per cent of NSW households do not have contents insurance, compared with an average of 25 per cent for other states where the insurance levy has been abolished,” the manual said.

“Abolishing the ESL will help reduce NSW’s high rates of under-insurance and reduce the number of households and businesses that are exposed to financial ruin when fire or other emergencies occur.”

The new levy is proposed to be introduced from July 1. Council is required to notify land owners of their classification- which the ESPL is based on- by April 30.

“As part of the proposal [council] will be rolling out a communication strategy to let people know what it’s all about, and as I understand government will also be doing that to ensure people understand what the levy is in respect of,” Mr Riley said.