The National Insurance Brokers Association (NIBA) has written to NSW Finance and Small Business Minister Damien Tudehope seeking a meeting over emergency services levy (ESL) collection difficulties when placing risks with foreign insurers.

NIBA says collecting the correct amount of ESL is an “incredibly difficult and expensive process” for brokers who are forced to place NSW risks overseas due to a lack of availability in the domestic markets.

Brokers say they are not able to determine with any degree of confidence whether they have collected sufficient levy until well after the financial year has ended and, in many cases, well after the policy period has expired.

Significant changes to the ESL contribution target also make predicting liability under the scheme “almost impossible”, NIBA says in a Broker Buzz update.

The Office of the Minister for Finance and Small Business is seeking advice from Revenue NSW on the matters raised by NIBA, and is expected to then respond to the group on the issues and a potential meeting.

NIBA and the Insurance Council of Australia have long called for the abolition of the ESL on premiums, arguing it is equitable and encourages people from adequately insuring their risks.

This year’s NSW Budget says overall revenue from the ESL including insurer and council contributions will be $1.1 billion in 2021/22 and $4.6 billion over the next four years.