About 97% of NSW homeowners would be better off if the state changed its method of fire brigade funding, according to new research. The NSW Public Accounts Committee (PAC) says most home and commercial property owners will get substantial tax cuts if funding is switched from a levy on insurance to a property-based charge on all citizens.

And it won’t affect the state’s finances, either. In his report last year, HIH Royal Commissioner Neville Owen recommended that states and territories which have not already done so (NSW, Victoria and Tasmania) should abolish fire service levies on insurers.

NSW Treasurer Michael Egan later released a statement saying the Government would consider an alternative. Current fire services funding imposes a 14 % tax on NSW home and contents policyholders and 24% on commercial property owners.

Most domestic policyholders pay about 32% on top of base premiums, including other costs like GST and stamp duty, while businesses pay about 42% extra.

Insurance Council of Australia Executive Director Alan Mason says the PAC research shows the NSW Government can ask those who avoid the current levy to pay their fair share.

“The modelling shows this will improve the affordability of insurance, which will help reduce underinsurance in the community,” he said. “Given the broad service they (fire brigades) provide, it is only fair the whole community contributes.”