NIBA Welcomes NSW Governmentʼs Next Steps on Emergency Services Levy Reform
Media Release
The National Insurance Brokers Association of Australia (NIBA) has welcomed the NSW Governmentʼs announcement that the next steps in reforming the Emergency Services Levy (ESL) will progress through a Parliamentary inquiry.
NIBA has long advocated for ESL reform, recognising that the current model disproportionately penalises responsible households and businesses that purchase insurance. The Parliamentary inquiry is a key opportunity to improve affordability and create a fairer funding model.
NIBA CEO Richard Klipin said the move was a constructive step toward a more equitable and sustainable funding model, one that can also help address insurance affordability pressures.
“The announcement to reform the Emergency Services Levy through a Parliamentary inquiry is a positive move towards creating a fairer and more equitable system for all. The current NSW ESL model penalises responsible home and business owners who invest in insurance to protect their assets. NIBA has consistently highlighted the need to rectify this imbalance and create a system that incentivises responsible risk management practices and increases insurance affordability, said NIBA CEO Richard Klipin.
In NSW, the ESL accounts for about 18% of the cost of insurance for households in NSW, and more than 30% for businesses, adding significant pressure to premiums at a time when affordability is already challenging.
NIBA notes the NSW governmentʼs intention to release an options paper to inform the inquiry, that will include multiple levy model options, alongside commitments that the reform should protect vulnerable community members, while sustainably funding emergency services.
NIBA also welcomes the focus on affordability outcomes, with NSW continuing to face underinsurance challenges, with almost 35% of households not having contents insurance.
“This inquiry is an opportunity to help develop a model that is fairer, simpler, and supports increased insurance participation across the community,” added Richard.
NIBA looks forward to engaging with the Parliamentary inquiry process and working constructively with the NSW government to support reform outcomes that improve affordability while ensuring ongoing sustainable funding for emergency services.