Reference: Changes to NSW Fire Service Levy collection rates
The following advice is being provided to FM Global and AFM clients and brokers in light of forthcoming changes to the funding of the NSW State Emergency Services.
The NSW State Government announced in December 2015 it will abolish the NSW Emergency Services Levy (ESL), commonly known as the Fire Services Levy (FSL) on insurance policies, in favour of a property based levy from 1 July 2017.
The ESL provides funding for the NSW State Emergency Services which is currently collected through a levy on insurance policies. FM Global and AFM policy holders will continue to pay an ESL on any affected policy renewals up to and including 30 June 2017 where insurance coverage is provided in NSW.
We have determined that an increase in rates will be required for any new or renewal business from 15 June 2016 in order to meet our collection and funding obligations. These rates are:
| Levy | Existing Rate | New Rate |
| NSW ESL - Commercial Property | 33% | 40% |
We will monitor our rates over the transition period (01-Jul-2016 to 30-Jun-2017) and will provide an update when further changes to rates are required. The Fire Service Levy rates applying to policies for Tasmania remain unchanged at the present time.
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Lyndon Broad |
Glen Drinnan |