The Insurance Council of Australia (ICA) says Victorians will enjoy lower premiums immediately after the state’s fire services levy (FSL) is abolished in 2012.

A spokesman told insuranceNEWS.com.au the move is expected to produce a more equitable system for the state.

“Based on research undertaken in other states, such as SA and WA, we can assume the benefits are immediate,” she said.

Suncorp CEO Personal Insurance Mark Milliner told insuranceNEWS.com.au the abolition will be good for the insurance industry.

“The (State) Government deserves full credit for the move and it will go a long way towards helping people afford insurance,” he said. “It is a very positive move.”

While the Victorian Government has yet to decide on how the transition to a future levy system will be arranged, Mr Milliner says he cannot see any major problems developing.

“I suspect there will be some transition issues, but nothing suggests these will be major,” he said. “Given the right amount of time for the transition, we can undertake all the necessary planning.”

ICA says the WA move from an insurance-based levy to a property-based system saw close consultation held between all stakeholders during the transition.

“ICA will work closely with all relevant parties to ensure the transition is as seamless as possible,” the spokesman said.

Another ongoing annoyance of the current levy scheme is the fact that stamp duty is charged after GST, maximising the government’s take.

“ICA certainly agrees stamp duty should be removed,” the spokesman said.

Mr Milliner says the State Government is “aware of the problem” with stamp duty and hopes with the transition it will be looked at again.