Emergency Services Levy divides Country Mayors' Association, NSW government

The levy funds Fire and Rescue NSW, the Rural Fire Service and the State Emergency Service. Previously, the money came from a tax on insurance companies.

However, there were changes in 2017 that now see about 12 per cent of the levy come from ratepayers.

Earlier in the month legislation was passed to record the ESL as a separate item on the rate notice, to make residents aware of the amount they were paying towards the levy, while also ensuring it did not impact on the amount councils were allowed to collect via rates.

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But Country Mayors' Association of NSW chair Ken Keith said he was "astounded" councils had received notices from the Office of Local Government instructing them not to comply with the legislation.

"It did go through both houses of parliament but they said due to the drafting of the legislation they can't enforce it," Cr Keith said.

Cr Keith is calling on councils not to pay the increased levy until the matter is resolved. It has been supported unanimously by all of the member councils, including Dubbo Regional Council, in the Country Mayors' Association.

Local Government Minister Shelley Hancock has been contacted for comment but has not responded.

Cr Keith said his message to Ms Hancock was to "take the intent of the parliament and enforce it".

"Fix the legislation so the intent of the parliament is carried through," he said.

The Country Mayors' chair, who is also the mayor of Parkes, said people were "annoyed" that the state-government charge was put onto local government rates.

"Most people with all the floods and fires that have happened over the last few years would understand the need to contribute more to the emergency services, but let the state government take the responsibility for putting on those additional charges and don't make it look like the local government is putting on those additional charges," Cr Keith said.

He said having to collect the emergency services levy as part of council rates took away money that council could be spending on local infrastructure like roads and footpaths.

NSW Greens MP David Shoebridge, who serves in the upper house, introduced the amendments that would change the ESL.

"We changed the law to prevent this hidden tax, but the government is imposing it on council's regardless. That's not how it's meant to work in a democracy," he said.

Mr Shoebridge said it was "frustrating that the government is taking this belligerent approach".

"Of course emergency services need to be fully funded but that's primarily a state government responsibility," he said.

"One of the reasons we are so firm in our position is that it's those councils that have been hardest hit by flood and fire that are paying the increased costs. That's not a fair way of paying for emergency services."

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