Victorian Government rejects fire services levy appeal
The Victorian Government has again refused to scrap the fire services levy (FSL), five years after the HIH Royal Commission recommended its removal.
Liberal MP for Northern Victoria Donna Petrovich this month called on the Labor State Government to scrap the tax on insurance.
In an address to the upper house, Mrs Petrovich said the FSL means insured residents fund the fire services. Uninsured residents have equal access but contribute nothing.
In rejecting Mrs Petrovich’s appeal, State Treasurer John Lenders said all Australian residents fund fire services through tax regardless of how it is levied.
Mrs Petrovich told insuranceNEWS.com.au she will continue to pressure for change, with rural constituents paying inflated premiums due to the tax impost.
In rural Victoria, commercial operators are levied 55% while the FSL accounts for 22% of homeowners’ premiums.
Mrs Petrovich also questions the state’s ability to distribute those funds. “One of the larger winery owners was very concerned at paying a significant levy, only to note the local brigade couldn’t get a tanker,” she said. “The Country Fire Authority is staffed by volunteers who have to fundraise.”
Mr Lenders did not respond to requests by insuranceNEWS.com.au for comment.
NSW, Victoria and Tasmania are the only states retaining the levy system.
Liberal MP for Northern Victoria Donna Petrovich this month called on the Labor State Government to scrap the tax on insurance.
In an address to the upper house, Mrs Petrovich said the FSL means insured residents fund the fire services. Uninsured residents have equal access but contribute nothing.
In rejecting Mrs Petrovich’s appeal, State Treasurer John Lenders said all Australian residents fund fire services through tax regardless of how it is levied.
Mrs Petrovich told insuranceNEWS.com.au she will continue to pressure for change, with rural constituents paying inflated premiums due to the tax impost.
In rural Victoria, commercial operators are levied 55% while the FSL accounts for 22% of homeowners’ premiums.
Mrs Petrovich also questions the state’s ability to distribute those funds. “One of the larger winery owners was very concerned at paying a significant levy, only to note the local brigade couldn’t get a tanker,” she said. “The Country Fire Authority is staffed by volunteers who have to fundraise.”
Mr Lenders did not respond to requests by insuranceNEWS.com.au for comment.
NSW, Victoria and Tasmania are the only states retaining the levy system.