Victoria’s new Fire Services Levy (FSL) Monitor Allan Fels will start work as soon as legislation establishing his office becomes law.

The state’s Consumer Affairs Minister Matthew O’Brien says Professor Fels will report to him quarterly, with the details to be published.

Professor Fels will be assisted by the state’s independent Essential Services Commission, which already oversees statutory insurance.

“It is anticipated the office of the monitor and the [commission] will work closely and co-operatively in monitoring the price of insurance during the transition period,” Mr O’Brien told Parliament during the second reading of the FSL Monitor Bill, which will be passed into law before MPs break for the summer on December 13.

The monitor will oversee the move from a levy on insurance policies to a tax on property owners next July 1, and will scrutinise insurance premiums to prevent price exploitation.

Mr O’Brien told Parliament the Office of the FSL Monitor will be established as soon as possible to begin raising public awareness of the reforms.

The Consumer Action Law Centre has welcomed the monitor role and says it hopes to see the insurance industry “acting appropriately”.

“There is a risk that cuts to premiums won’t be passed on,” the centre’s Director of Policy and Campaigns Gerard Brody told insuranceNEWS.com.au.

He says he remains sceptical about industry claims the FSL’s demise will affect underinsurance levels. “Removal of the levy in other jurisdictions has had little impact on rates of underinsurance.”

Mr Brody says consumer-focused programs are necessary to address underinsurance, such as increased availability of cover suitable for renters and low-income consumers, and options such as regular premium deductions from Centrelink payments.