What will it take to make the Emergency Services Levy fair in NSW?

What will it take to make the Emergency Services Levy fair in NSW?

As many readers would appreciate, I have long been an advocate for the removal of emergency services levies on general insurance. Back in June 2012, I reported that the NSW Government was entering into a public discussion on the fairness or otherwise of having those prudent and risk averse to fund the majority of the fire services levy. A White Paper then came out from […]

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I fully support the review of Fire Service Levy in NZ

I fully support the review of Fire Service Levy in NZ

It was a nice way to end a tough week to read in InsuranceNEWS that the New Zealand Government is looking at alternatives to having the fire service levy heavily funded by insurance. There is absolutely no doubt that people buy less insurance when the price goes up. We saw it here in Victoria before the Black Saturday bush fires, in North Queensland due to […]

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How could the NSW Government get it so wrong on the removal of the Emergency Services Levy (TAX)?

How could the NSW Government get it so wrong on the removal of the Emergency Services Levy (TAX)?

I read the article in insuranceNEWS in which it was reported that the NSW parliamentary Legal Affairs Committee, which held an inquiry to consider the impact of the abandoned reform, “found the NSW Government’s failed implementation of [the reform] was a poor public policy decision, undertaken without adequate understanding of the complexities of the issue or the impacts of the proposed reforms.” What beggars belief is that […]

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Terrorism Levy – Another hidden tax on insurance – You will be surprised just how much – a whopping 45% of terrorism levy collected.

Terrorism Levy – Another hidden tax on insurance – You will be surprised just how much – a whopping 45% of terrorism levy collected.

Where do we start on this thorny issue… Point 1. Report after report urges governments to remove taxes on insurance. The Federal Government’s Productivity Commission inquiry on “Competition in the Australian Financial System” released earlier this year is the latest to do so. In fact, every time the issue has been looked at, going right back to the Royal Commission into the collapse of HIH, […]

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Draft Report to Government argues for the removal of distortionary taxes.

In catching up on my reading I was drawn to a draft report which was released on 7 February 2018. The final report is expected to be handed to the Australian Government by 1 July 2018. Under the Productivity Commission Act 1998, the Government is required to table the report in each House of the Parliament within 25 sitting days of receipt. The section that I […]

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Are we just giving lip service to the customer experience?

I attended an insurance breakfast last week and heard a number of people talk about the customer experience. I thought I would share just two claims that have crossed my desk. Yesterday, one of the LMI team attempted to report a landlord claim on behalf of a family who have lost a loved one. He thought he was speaking with the insurer but it appears that […]

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Whinge or fix it: that is the question!

I wrote at the time how disappointed I was that the Federal Government only earmarked a token $26.1 million towards disaster mitigation for the Federal Budget in 2017-2018.  (To get the benefit the states have to match this dollar for dollar). At the same time Federal and State politicians are complaining about the high cost of insurance. Rather than genuinely address the problem, the insurance industry […]

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Another broker angry at the NSW Government

I received this email last night and it mirrors many phone calls and emails I have received. “The NSW ESL Insurance Monitor has now gazetted a new Section 30 Notice which requires premium comparisons to be provided with renewal invitations and renewal schedules for residential property insurance in NSW from 1 July 2017.” At what point does the State Government pull their head in & […]

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Happy to see some relief for Insurance Taxes in NSW (unless there is yet another back flip)

New South Wales Treasurer Dominic Perrottet says the state’s 2017 budget will relieve cost pressures for 600,000 small businesses in the region through the reduction of red tape, including by axing insurance duty on a range of policies for businesses with annual turnover of $2 million or less. As an aside, I am convinced governments want businesses to stay small for as soon as you […]

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Is it any wonder the public has lost faith in politicians? NSW ESL what a mess!

No news article has caused my phone or email to run to hot as the one announcing the New South Wales back flip on the removal of the State’s Emergency Services Levy earlier this week. Let us review the facts. The New South Wales government are the last mainland state in Australia to remove the levy. They did not have to reinvent the wheel, all […]

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