After an exhaustive campaign in Victoria, it turns out that the NSW Government is more positive about dumping the fire services levy than its southern neighbour. For the insurance industry, it’s a case of good old dumb luck – an insurance/business coalition wasn’t even on its feet in NSW before the campaign was swept up in the recommendations of the HIH Royal Commission to dump insurance taxes and all other unnecessary imposts on insurance.

For the Government, it was a chance to acknowledge that the fire services levy really is unfair; it is also an opportunity to bury the more revenue-sensitive premium taxes issue raised by the royal commission. NSW also halved the stamp duty on premiums last year.

Victoria has promised nothing, and is unlikely to do so. Faced by a billion dollar-plus deficit this year, Victorian Premier John Brumby has said nothing in response to the royal commission’s recommendation that such taxes be removed. A Herald Sun report quoted a spokesman for Mr Brumby commenting: “We currently have no plans to change stamp duty arrangements for general insurance.”