The National Insurance Brokers Association (NIBA) has provided guidance to members on the pending abolition of the NSW emergency services levy (ESL).

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

NIBA says it has met with NSW Treasurer Gladys Berejiklian and officials, and will remain in close contact throughout the transition.

It says until July next year current ESL obligations will apply to insurance companies and others who are required to collect the levy.

It says each insurance company will determine its approach, following a similar pattern to when the fire services levy (FSL) was abolished in Victoria.

Allan Fels has been appointed Emergency Services Levy Insurance Monitor – after overseeing the FSL transition in Victoria – with David Cousins as his deputy. 

The monitor’s role is to ensure savings made through removal of the ESL are fully passed on to policyholders, and meetings with insurers have already begun.

“NIBA will continue to meet with the monitor during the transition period, and we will keep members informed of developments relating to the new legislation and the monitor’s guidelines,” NIBA said.

“ESL is to be charged at the rate determined by the insurer. The rates can and will vary between insurers. Brokers must follow the direction of the insurer, and must not determine their own ESL rate during the transition period.”