Next Phase of NSW ESL Reform Now Underway

The next phase of Emergency Services Levy reform in New South Wales is now underway, with a Parliamentary inquiry set to examine options for replacing a funding model NIBA has long argued unfairly penalises those who insure.

The NSW Parliament has finalised the membership of the Legislative Assembly’s Select Committee on Emergency Services Funding Reform. Independent MP Jacqui Scruby will chair the committee, which has been tasked with examining replacement levy model options and reporting back by 18 November 2026.

For NIBA, the inquiry represents a significant opportunity to advance long-overdue reform. The association has consistently argued that the current ESL model is fundamentally unfair because it places the cost of funding emergency services onto insurance premiums, effectively penalising households and businesses that do the right thing by taking out cover.

In its recent response to the NSW Government’s next steps on reform, NIBA welcomed the decision to progress the issue through a Parliamentary inquiry, noting that the current system continues to add pressure to premiums at a time when affordability is already under strain. NIBA said the inquiry is a key opportunity to improve affordability and deliver a fairer funding model for communities across the state.

The committee will assess potential replacement models against principles including cost recovery, equity, efficiency, simplicity and sustainability, while also considering issues such as concessions and transition arrangements. That process will be closely watched by brokers, who know firsthand how cost pressures can affect insurance decisions for clients.

As the inquiry progresses, NIBA will continue advocating for reform that improves insurance affordability and accessibility, and creates a more equitable system in NSW.