Insurance buyers in NSW and Victoria are being forced to dig deeper to fund the fire services, after another round of fire services levy (FSL) hikes.

Among the changes is an increase of three percentage points on the levy on premiums among some classes in country Victoria, taking the levy to 52%.

This increase applies to fire, industrial special risks (ISR), consequential loss and contractors all risks policies.

National Insurance Brokers Association CEO Noel Pettersen told Sunrise Exchange News it’s time for the governments of NSW, Victoria and Tasmania to join the other states in adopting a more equitable system of funding the fire services.

“These are world-record taxes and charges, and a huge detriment in tough times to taking out insurance,” he said. “It leads to underinsuring.

“It is unfair and should be based on household rates. Why should those who purchase insurance subsidise those who don’t?”

Under the new rises, the NSW levy on fire, ISR, and consequential loss is now 36%, up two percentage points. Householder levies in NSW move from 19% to 20%, while the levy on motor remains 1%.

In rural Victoria, the levy for householders is now 22%, up from 20%.

But Melbourne policyholders have received some relief under the new FSL regime. In metro Victoria, FSL levies have come down – from 22% to 19% for householders and from 50% to 47% for other classes.

All the states except NSW, Victoria and Tasmania fund their fire services through property rates.