NSW brokers have been warned against providing false information on the upcoming abolition of the state’s emergency services levy (ESL).

The charge on insurance will be replaced by a property levy from July 1 next year.

ESL Insurance Monitor Allan Fels is concerned some brokers are telling clients that if the policy extends beyond July 1, they may end up paying twice.

The monitor’s office says this is not the case. 

“The ESL charged as part of your insurance policy is to cover the 2016/17 financial year,” it said. “The property levy, collected alongside council rates, will cover the 2017/18 financial year. 

“The method of collecting the levy is what has changed.”

National Insurance Brokers Association CEO Dallas Booth told insuranceNEWS.com.au the important thing to remember is insurers are obliged to fund emergency services this financial year, and they meet that by levying premiums when transactions occur. 

There will be no levy on insurance premiums if the transaction occurs after next July 1.

“Clients who take out or renew policies during the current financial year will pay the levy on their premiums,” he said.

“In the 2017/18 financial year, there will be no levy on insurance premiums – the levy will be collected alongside council rates, so clients will not be paying twice. 

“They pay once in 2016/17 on their insurance premium, and once in 2017/18 with their council rates. The period of cover under the insurance policy is irrelevant for ESL purposes.”

Further information is available here.