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Victorian Government holding FSL consultations

The Victorian Government will hold a second round of public consultation on changes to the state’s fire services levy (FSL), which will move from a premium-based system in 2013.

Meetings will be held in regional centres and cities and the outskirts of Melbourne later this week and into November on the move to make the FSL a property-based levy rather than a charge on insurance premiums.

The transition to the new levy system will start in July and take effect fully in July 2013.

While many in the insurance industry support the change, a 34.6% increase in the levy for regional policyholders in the next financial year – the final year of the imposition on premiums – has caused an uproar.

Treasurer Kim Wells says more than 100 submissions have been received on the consultation paper released for public comment.

“The new levy will ensure all Victorian property-owners pay a fair contribution for fire services, and that fire services continue to operate with sufficient resources,” he said.

Shepparton broker Ben Goodall is campaigning against the increase in the levy, saying businesses outside metropolitan Melbourne are being hit hard.

This year insurers will contribute $416 million of the Country Fire Authority’s (CFA) $536 million budget via the FSL – a 34.6% increase on last year.

The CFA’s budget has been increased to pay for new plant and equipment recommended by the royal commission into the state’s 2009 bushfires.

Mr Goodall, who is GM of Griffiths Goodall Insurance Brokers, says he has encountered mixed support within the industry, with some believing the increase is the price that has to be paid pay to get a fairer system in 2013.