Fire Service Levies rising in New South Wales #insurance
Insurers in New South Wales, the only mainland state that still has Fire Service Levies on insurance, have been reviewing the adequacy of the charges to ensure they have sufficient to meet their obligations to the New South Wales government.
As a result of premium rate reductions and expected increase on the total tax impost, the Levy is expected to increase.
QBE have advised that for new business written on or after 11 October 2014, the following rates for Fire Service Levy will apply:
- Fire/ISR/Consequential loss 31.5% (previously 28.0%)
- Construction risk 31.5% (previously 28.0%)
- Householders & house owners 17.5% (previously 15.5%)
- Motor 1.0% (previously 0.5%)
- Valuables 3.5% (previously 3.0%)
These NSW levies include the statutory contributions system for the funding of the NSW Emergency Services (SES).
It is extremely disappointing to me and any thinking member of the public that the New South Wales State Government have not acted on their promise to remove this archiac tax from insurance, which has the unintended but serious consequence of encouraging home and business owners not to have adequate insurance. This does not help the home or business owner, business employees, the community or the New South Wales economy when a loss occurs.
Surely we do not need another Royal Commission as we did after the Canberra Bush Fires or the Victoria “Black Saturday” Bushfires for this government to do the right thing by the public and remove the tax from insurance.