Fire Service Levy

Changes to the NSW Emergency Services Levy

On 30 May, 2017 the NSW Government announced it will defer the introduction of the Fire and Emergency Services Levy (FESL). The deferral of the reform (planned for 1 July 2017) will impact the removal of ESL from insurance premiums and the role of the Insurance Monitor.

The Emergency Services Levy or ESL, referred to in our documents as the Fire Services Levy or FSL, goes towards funding the fire and rescue emergency services in NSW.  This levy is charged by insurers and paid to the NSW State Government.

Insurance companies are required to contribute almost ¾ of the total budget for these services in NSW each financial year. Like other insurers, we reclaim this amount by charging an ESL on insurance policy premiums.

On 22 June 2017, The NSW Parliament passed the Emergency Services Levy Bill 2017, which requires insurers to collect the ESL on insurance premiums in the financial year commencing 1 July 2017. The bill has now passed into law and as a result Axis Underwriting Services will again be collecting ESL rates on applicable classes of policies in NSW from 01 August, 2017 (Residential Strata) and 16 August, 2017 (all other policies).

If you require further information, please contact us on (03) 8660 7000 or email us at info@axisunderwriting.com.au.

 

IMPORTANT NOTICE – UPDATE

CHANGES TO THE NEW SOUTH WALES EMERGENCY SERVICES LEVY

We have determined that the ESL charges should be revised and the following new rates will be effective from the dates shown:-

Product Current New
Residential Strata
New covers & renewals – 01 June 2017
0.0% 0.0%
Fire / ISR / Consequential Loss / Commercial Strata 15.0% 0.0%
Bed & Breakfast
New covers & renewals – 01 June 2017
15.0% 0.0%

IMPORTANT NOTICE – UPDATE

CHANGES TO THE NEW SOUTH WALES EMERGENCY SERVICES LEVY

We have determined that the ESL charges should be revised and the following new rates will be effective from the dates shown:-

PRODUCT CURRENT NEW
Residential Strata
New Covers & Renewals – 20 February 2017
20.0% 16.0%
Fire/ ISR/ Consequential Loss/ Commercial Strata
Bed & Breakfast
New Covers – 01 March 2017 | Renewals 20 March 2017
30.0%
20.0%

15.0%
15.0%

Changes to the New South Wales Emergency Services Levy

Important Notice

The New South Wales Government has passed legislation to abolish the Emergency Services Levy (ESL) – known also as Fire Services Levy (FSL) – from insurance premiums with effect from 1 July 2017 and replace it with a property-based levy as part of council rates creating a fairer system for all.

On 22 July 2016, under Section 30 of NSW Emergency Services Levy Insurance Monitor Act 2016, the NSW Emergency Services Levy Monitor published the following notice in the NSW Government Gazette.

It is a requirement for all insurers (and those acting on an insurers behalf) that this notice be issued with all quotes and renewals where a NSW ESL charge applies.

The Fire Services Levy (ESL) component of insurance premiums relates to the financial year the policy was taken out and not to the policy period, however, insurers are still required to meet their full ESL obligations for the 1 July 2016 to 30 June 2017 financial year.

To ensure we can meet our collection obligations, we have determined that the ESL charges should be revised and the following new rates will be effective for new covers from 15 January 2017 and renewals from 15 February 2017.

 

PRODUCT CURRENT NEW
Fire/ ISR/ Consequential Loss/ Commercial Strata 40.0% 30.0%
Bed & Breakfast/ Residential Strata 20.0% 20.0%

 

We will review these rates on a regular basis through the financial year to determine necessary adjustments with the intention of reducing the rates over the year to zero % prior to July 2017.

Please get in touch if you would like further information.

If you have any questions about how this change will impact the cost of insurance, please contact Axis Underwriting Services Pty Ltd.

If you would like further information on the insurance side of Emergency Services Levy Reform and the removal of the ESL you can contact the Monitor on  Ph: 1300 607 723   or  enquiries@eslinsurancemonitor.nsw.gov.au   or   www.eslinsurancemonitor.nsw.gov.au

If you require further information about the property levy side of Emergency Services Levy Reform and the new ESPL, please email your enquiries to ESPL.info@treasury.nsw.gov.au.

New South Wales Fire Services Levy Update – Effective 28th July 2013

Axis Underwriting has determined that the New South Wales Fire Services Levy (FSL) should be revised and the following new rates will be implemented with effect from 28 July 2013.

Victorian Fire Service Levy Reform – Effective 1st July 2013

From 1 July 2013 the levy on insurers (FSL) will transfer to a property based levy to be collected through council rates and will no longer form part of your insurance premium.

Victorian Fire Service Levy Update – Effective 28th June 2013

Axis Underwriting has determined that Metropolitan and Country Fire Authority FSL charges should be revised and the following new rates will be implemented with effect from 28 June, 2013:-

Victorian Fire Service Levy Update – Effective 28th April 2013

Following recommendations from the 2009 Bushfire Royal Commission, the Victorian Government will abolish the Fire Services Levy (FSL) charge from insurance premiums with effect from 1 July 2013 and replace with a property levy that will not form part of the insurance premium.

Victorian Fire Service Levy Update – Effective 28th March 2013

Following recommendations from the 2009 Bushfire Royal Commission, the Victorian Government will abolish the Fire Services Levy (FSL) charge from insurance premiums with effect from 1 July 2013 and replace with a property levy that will not form part of the insurance premium.

By |Fire Service Levy|February 24, 2013

Victorian Fire Services Levy – Effective 1st February 2013

Following recommendations from the 2009 Bushfire Royal Commission, the Victorian Government will abolish the Fire Services Levy (FSL) charge from insurance premiums with effect from 1 July 2013 and replace with a property levy that will not form part of the insurance premium.

By |Fire Service Levy|February 1, 2013