The NSW Parliament has passed legislation to reinstate the insurance-linked emergency services levy (ESL), after the Government backed away from a move to a property-based charge.

The bill was introduced and passed last week, after Premier Gladys Berejiklian’s backflip shocked the insurance industry last month.

The legislation gives no definite timeline for how long the insurance-based levy will remain in place.

The Fire and Emergency Services Levy Act, making the switch to the property-based collection, was due to take effect next month. The new bill says the switch has been postponed to “a start date appointed by the regulations”.

“Any such regulation must be published on the NSW legislation website at least one year before the start date,” an explanatory note says.

Rules covering the ESL Insurance Monitor have been set in place until at least July 1 2020.

“The amendments confer additional functions on the monitor in connection with the re-established insurance contribution scheme,” the explanatory note says.

“The monitor will be able to assess overcharging by insurers in the first two financial years of the re-established insurance contribution scheme.”

Budget papers show the insurance-based ESL is expected to generate revenue of $794 million next financial year, plus an additional duty of $79 million.

Deferral of the fire and emergency services levy was estimated to reduce revenue by $894 million.