The entity charged with reviewing all NSW taxes says the controversial fire services levy (FSL) on insurance policies will be considered. But the industry shouldn’t hold its breath waiting for a change.

State Treasurer Michael Costa says the broad terms of reference will allow the Independent Pricing and Regulation Tribunal to recommend positive ways in which the NSW taxation system could become more competitive with neighbouring jurisdictions.

“The range of taxes available to the states is generally inefficient and narrowly based,” he said. “There’s no doubt there needs to be better alignment between where revenue is raised and where it is spent.”

No specific taxes have been mentioned, but it is believed the NSW payroll tax – and not the FSL – will come under most scrutiny. A spokesman for Mr Costa told Sunrise Exchange News he would not comment on the FSL “or any other tax the insurance industry wants to get rid of”.

The review is expected to be completed by the middle of next year.