The insurance industry has promised to pass on the savings if the WA Government goes ahead with a plan to scrap the fire service levy.

A new collection system based on property rates is being proposed by the state’s new Police and Emergency Services Minister, Michelle Roberts.

Speaking at ICA’s WA conference last week, ICA Executive Director Alan Mason said the industry has spent many years campaigning against the “inequity” of fire service levies. With the levy contributing to making general insurance taxes the highest in the world, Ms Roberts’ proposal “will be welcomed by those people who have been penalised in the past for being prudent enough to take out insurance”.

Mr Mason said the insurance industry “will be happy to work with the Government on the implementation of a new system”. He said this move will put further pressure on the Victorian and NSW governments to reform their insurance tax regimes.