Expert panel to guide NSW ESL reform

A new expert panel comprising of various industry groups coming together will advise the NSW Government on ESL reform. 

A newly established Stakeholder Reference Group, which includes experts from various industry bodies, will advise the New South Wales (NSW) state government on reforming the Emergency Services Levy (ESL).  

The NSW Government had announced its intention to reform the current emergency services funding model and replacing it with a system that would be more sustainable, a move that was welcomed by NIBA and other industry groups. 

The new Stakeholder Reference Group will be tasked on advising the state government on how emergency services can be best funded moving forward. They will provide various perspectives on what a new funding model should look like, that would replace the current ESL in place, which is funded through insurance premiums.  

With Tasmania’s announcement last year to abolish the Fire Services Levy (FSL), currently NSW is the only mainland state that applies a tax on insurance to fund its emergency services. The ESL in NSW accounts for about 18% of the cost of insurance for households. This cost of insurance goes up to 30% (or more) for businesses.  

NSW also has the lowest rate of home and contents insurance in the country, with almost 35% of households not having contents insurance. Driving down the cost of insurance premiums is one of the major reasons for implementing this reform.  

Chaired by NSW Treasurer Daniel Mookhey, the expert panel of the Stakeholder Reference Group will have guidance from representatives of the business sector, property and real estate bodies, insurance bodies, local government as well as emergency services.  

“The ESL on insurance has led to NSW having one of the highest average insurance costs for businesses and households in the country. 

“We need to get the balance right to ensure that NSW can fairly and sustainably fund the State’s emergency services, while bringing down insurance bills,” said NSW Treasurer Daniel Mookhey.  

A consultation paper will be released on ESL reform in the near future.