Sydney councils oppose abolition of fire services levy
Sydney councils have come out swinging against a proposal to axe the fire services levy (FSL), arguing the increased cost to ratepayers is unacceptable.
The NSW Independent Pricing and Regulatory Tribunal last month recommended the FSL be phased out in favour of a property rates-based levy, but local councils say rates would need to rise 20-40%.
The Local Government and Shires Associations, the NSW councils’ peak body, told the Sydney Morning Herald the recommendation would cost ratepayers an extra $200 a year.
Although the FSL directly impacts the cost of insurance policies for local residents, Sydney councils have defended the tax because they believe a rates-based system would have a substantial impact on low-income households.
Councils in other states have used similar tactics to bury moves to abolish the FSL in the past.
Insurers argue the FSL compels insured residents to fund the fire services on behalf of uninsured freeloaders and contributes significantly to underinsurance in Australia.
The Insurance Council of Australia was unable to comment to insuranceNEWS.com.au on the councils’ views in time for publication.
The NSW Independent Pricing and Regulatory Tribunal last month recommended the FSL be phased out in favour of a property rates-based levy, but local councils say rates would need to rise 20-40%.
The Local Government and Shires Associations, the NSW councils’ peak body, told the Sydney Morning Herald the recommendation would cost ratepayers an extra $200 a year.
Although the FSL directly impacts the cost of insurance policies for local residents, Sydney councils have defended the tax because they believe a rates-based system would have a substantial impact on low-income households.
Councils in other states have used similar tactics to bury moves to abolish the FSL in the past.
Insurers argue the FSL compels insured residents to fund the fire services on behalf of uninsured freeloaders and contributes significantly to underinsurance in Australia.
The Insurance Council of Australia was unable to comment to insuranceNEWS.com.au on the councils’ views in time for publication.