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Victoria revisits fire services levy consultation

The release of a white paper into the Victorian fire services levy (FSL) and issues surrounding non-insurance has been put on hold as the state’s new government works through its own consultation process.

The previous ALP government promised it would replace the FSL – the main cause of the state charging a world record rate of tax on premiums – with a property-based levy.

Former premier John Brumby planned to release a white paper last month following further consultation.

But since taking office the coalition government of Premier Ted Bailleau has decided to set up its own FSL consultation process.

A spokesman for Treasurer Kim Wells says the Government is now working on developing a design for new legislation.

She told insuranceNEWS.com.au that Mr Wells’ office is also working on the implementation of a property-based tax “to ensure the new arrangement provides an equitable, efficient and sustainable funding option for the state’s fire services”.

While an announcement on the details outlining a new consultation process for the proposed legislation and its implementation is pending, the spokesman was unable to confirm a date.

“But we are committed to replacing the FSL with a property-based levy as recommended by the Victorian Bushfire Royal Commission,” she told insuranceNEWS.com.au.