***Advocacy update: 16 November 2023***
The Insurance Council of Australia (ICA) has congratulated the New South Wales Government for its decision to reform the Emergency Services Levy (ESL), announced by Premier Chris Minns on Thursday 16 November 2023.
This decision is an important milestone in improving insurance affordability in NSW and follows the ICA’s advocacy to ‘find a fairer way’ to fund emergency services.
It’s time NSW found a fairer way
Other states fund emergency services without taxing your insurance policy. It’s time NSW found a fairer way.
What is the Emergency Services Levy?
Unlike other states, NSW funds emergency services by taxing your insurance. If you live in NSW check your policy; it’s right there in black and white.
NSW Governments of both political sides have called it a levy, but it’s actually a tax that other states don’t charge.
The Emergency Services Levy inflates premiums and penalises those who protect themselves.
It discourages householders and small businesses from adequately insuring and makes insurance unaffordable for some.
There’s a simpler way to fund emergency services that also lowers your insurance cost.
It’s time NSW found a fairer way.
- NSW is the only mainland state that still funds its emergency services through a tax on insurance.
- The ESL increases home premiums by up to 18%.
- State taxes on insurance in NSW are nearly three times higher than in Victoria.
- Key reason why an estimated 13% of households in NSW are uninsured – double the rate in Victoria.
- Lower levels of insurance weaken NSW’s capacity to recover from extreme weather events and increase the burden on recovery services and government relief.