Will some insurers really forego collecting FSL in 2Q 2013?
State Government politicians have been inundated with emails and letters from members of the insurance industry and the public concerned at the effect of having no equitable transition period leading up to the removal of the Fire Service Levy on 1 July 2013.
Up until recently, the response has been to blame the insurance industry but I was passed a copy of an email from Mario Galteri of Coldstream Timber & Hardware, who has been a long term opponent of Fire Service Levy, that enclosed a copy of an email response from his local member’s office. It is the bit in bold that was news to me.
Professor Allan Fels has been appointed the implementation monitor for the transition to the new system.
Prof Fels will ensure the industry tapers down their current FSL takings going into 1 July 2013. To achieve this, Parliament is set to pass a set of consumer protection laws for Prof Fels to ensure policyholders are not ripped off during the transition. Secondly, Prof Fels will be able to name and shame any insurers who are profiteering from the transition.
The market will play a big part in ensuring no-one pays the FSL twice. Policyholders are free to swap insurers next financial year if they feel they are being mistreated. Several insurers have already indicated that they will not charge for the FSL in the final quarter of this financial year in a bid to gain a competitive edge.
I hope the above answers your question.
Mitch Tanner |
Research & Media
The Office of Christine Fyffe MP Deputy Speaker of the Legislative Assembly
Member for Evelyn
With so much tax to be collected, it is difficult to see how this is possible. Either the unnamed insurers will meet the cost out of their bottom line profit, up their premium and not show the tax separately or they will have over-collected the tax from existing policy holders, or a combination of any two or more of these possibilities.