NZ insurers beat drum on fire levy reform
New Zealand’s insurance industry continues to call for reform of the nation’s fire service levy (FSL), as the country enters election mode before the September 20 vote.
The Insurance Council of New Zealand (ICNZ) has commissioned the Institute of Economic Research (NZIER) to investigate the FSL on commercial premiums.
It follows a report last year that found the levy on domestic premiums is the least efficient means of funding the fire service.
The Government has also ordered bureaucrats to report on how the service should be funded, and that work is under way.
ICNZ CEO Tim Grafton says Parliament rises in July, so it is unlikely any decision on the FSL will be made before the election. But the industry wants to ensure political parties know its view.
New Zealanders could pay an FSL on annual vehicle registrations and council property rates instead of insurance premiums, he told insuranceNEWS.com.au.
Mr Grafton says councils have collection systems in place and the NZIER research shows most insured households and vehicle owners would be no worse off – with some being better off – if collection were broadened.