NSW Government Issues Data Request to Support ESL Reform

The New South Wales Government has taken a significant step towards reforming the State's emergency services funding system by issuing a data request to insurers and intermediaries

The New South Wales Government has taken a significant step towards reforming the State's emergency services funding system by issuing a data request to insurers and intermediaries.

The request is part of a broader initiative to replace the current Emergency Services Levy (ESL) with a new property-based levy. 

On 16 November 2023, the NSW Government announced its commitment to overhaul the existing funding model, which relies heavily on the ESL collected through insurance policies. The proposed reform aims to introduce a more equitable system by linking the levy to the value of properties rather than insurance premiums. 

The data request, formally issued by the NSW Treasurer, the Hon Daniel Mookhey MLC, will enable the NSW Treasury to analyse the potential impacts of the reform on the community by matching the ESL paid by policyholders to alternate revenue bases, such as land values or capital-improved values. he collected data will play a crucial role in shaping the future of emergency services funding in NSW. 

Legislation passed in conjunction with the reforms will ensure the data provided will be used solely for evaluating and implementing the new levy system. Strict safeguards are in place to protect the confidentiality of the information, including limitations on data usage and mandatory secure disposal of personal information by 30 June 2028. 

Insurance brokers who have received the request are required to compile and submit data by 11 October 2024. In cases where no policies are subject to the ESL as of 31 January 2024, brokers must formally notify the Treasury via email. The NSW Treasury has confirmed that brokers are only required to provide data relating to policies where the broker is responsible for the collection and remittance of the ESL to Revenue NSW.  

The NSW Government's initiative marks a significant move towards a more sustainable and equitable system of funding emergency services, with the input from the general insurance industry playing a vital role in the transition process.