On 30 May 2017 the NSW Government announced it will defer the introduction of the Fire and Emergency Services Levy (FESL) as a property based tax, stating the ESL will continue to be collected via insurance policies. NSW Parliament passed the Emergency Services Levy Bill 2017 on 22 June 2017 which requires insurers to continue to collect the ESL on insurance premiums from 1 July 2017. Royal assent has now been received and the Bill passed into law. FM Global/AFM have estimated that to meet the funding obligations to the Fire and Emergency Services a rate of 35% will be applied to all assessable NSW premium. Following receipt of advice from the NSW State Revenue Office of initial contribution amounts in July, rates may be adjusted accordingly.
INFORMATION FROM THE NSW EMERGENCY SERVICES LEVY INSURANCE MONITOR
Information
The Emergency Services Levy (“ESL”) is a charge that is added by the insurance company to the cost of your property insurance to recover its required contribution to emergency services agencies in NSW. The ESL paid with any premium on a policy is used to fund emergency services in NSW in the financial year in which the policy commences.
The Insurance Monitor
The Insurance Monitor was established in June 2016 as an independent body. One of its functions is the monitor the prices for the issue of regulated contracts of insurance. Professor Allan Fels AO and Professor David Cousins AM have been appointed by the NSW Government as the Emergency Services Levy Insurance Monitor and Deputy Monitor, respectively.
If you would like further information
Contact your FM Global Account Manager or AFM Production Underwriter in the first instance if you have questions about your policy.
Information about the Insurance Monitor can be found at: https://www.eslinsurancemonitor.nsw.gov.au/