The Property Council of Australia has concerns over NSW Government plans to remove the Emergency Services Levy (ESL) from insurance and apply a different model to raise the funds. 

“While we support moves to improve insurance affordability for families in NSW, the property sector is concerned with the proposal to calculate the emergency service levy on the capital improved value of land,” Property Council NSW Executive Director Katie Stevenson told insuranceNEWS.com.au.   

“This approach will add further cost burdens on a development sector that’s already straining from a range of new taxes and infrastructure contribution charges.” 

Treasurer Daniel Mookhey will lead a consultation with industry and stakeholders on the proposed model. 

Few details have been announced to date, but Premier Chris Minns says the Government will remove the ESL from insurance and apply it instead to property, and appoint a monitor to ensure companies don’t keep premiums at elevated levels. 

The NSW Berejiklian Government backflipped in June 2017 on plans to ditch the levy, shortly before proposed reforms were due to take effect, after a backlash to those proposals by some businesses and property owners who faced increased costs.  

“We’ll learn the mistakes of the previous government’s attempts at this reform and ensure that we are investigating all potential methods of measuring the value of a property not just the unimproved value of the land,” Mr Minns said this month.  

The Insurance Council of Australia estimates the ESL adds 18% to home premiums and as much as 30% to commercial premiums, increasing underinsurance problems in NSW.