The NSW Government spent $25.42 million on preparations for the fire and emergency services levy (FESL) reform before backing away from it at the last minute, according to State Treasury estimates obtained by the Labor Party.

The figures cover the period from announcement of the reforms on December 10 2015 to the Government’s backflip on May 30.

“The Treasurer called it the ‘most significant reform of a generation’,” Shadow Treasurer Ryan Park said. “It could also be the most significant waste of taxpayer funds.”

The figures show the Office of Local Government granted $11.14 million to councils for expenses such as classifying land, revising and testing software and systems, and communications.

The NSW Treasury incurred costs of $7.76 million covering staff and contractors, advertising, software revisions, consultancies and other expenditure.

The Emergency Services Levy Insurance Monitor, established to oversee the change, cost $3.49 million, including $1.93 million for salaries and “on-costs”, $180,000 for advertising and $1.39 million for other expenses.

The Office of State Revenue incurred expenses of $1.91 million for software and system changes, including $1.69 million for staff and contractors, while Valuation Services incurred $1.13 million in one-off FESL set-up and implementation costs.

The proposed change would have seen the levy collected with council rates, rather than through insurance policies, with the change to take effect from July 1.

Mr Park says monitor Allan Fels and deputy monitor David Cousins continue to hold their roles, although it appears the Government has delayed the change indefinitely, despite having years to “get this right”.

“Now we know they wasted $25 million on the failed FESL,” he said.

The Insurance Council of Australia estimates members spent “tens of millions of dollars” on consultants and technological system changes in preparation for the expected switch.

Spokesman Campbell Fuller says insurers are now focusing on restoring the levy to insurance policies.

“That work is well advanced in co-operation with the NSW Government and the Emergency Services Levy Insurance Monitor,” he told insuranceNEWS.com.au.