An alliance of insurance and industry associations is continuing its push to persuade the Victorian Government that it should change its fire services levy system. The “community alliance”, set up and co-ordinated by the Insurance Council of Australia and including the National Insurance Brokers Association and a wide range of major business groups, has succeeded in maintaining pressure for change despite the state government’s reluctance to even consider the concept.

The Government set up an inquiry last year the day before it called an election – a move seen by critics as an attempt to stymie any regional criticism during the campaign. After all, the regions are paying the world’s highest level of premium taxes, including the fire services levy.

Submissions to the government’s inquiry – being held by the State Treasury ­– have been wide-ranging and challenging, according to one source. “The insurers haven’t ever been able to move the politicians, but it’s hard to ignore the size and spread of this alliance.”

The alliance is calling for a “property-based scheme that includes consideration for expectation of service”. In other words, money should be collected by councils at rates that recognise some people have little hope of ever seeing a fire engine arrive before their house burns down..

None of it is particularly new for the public servants fielding the submissions, but it would bring Victoria into line with the rest of Australia, and force fellow recalcitrant states NSW and Tasmania to reconsider. 

The alliance is understood to favour an “expectation of service” because it would eliminate any inbuilt cross-subsidy and ensure users pay.

It’s also big on equality and equity for all, with a promise that a new system would particularly benefit people who fully insure, as well as pensioners and people on low incomes. And it would remove the situation of people who don’t pay for the maintenance of the fire services having the same access as those who do.