Submission to NSW inquiry into fire and emergency services levy

Most of the funding for the New South Wales emergency services is currently provided by insurance companies, through levies on insurance policies.

Currently, uninsured properties make no direct contribution to the funding of emergency services, and the owners of underinsured properties contribute less than the owners of fully insured properties.  Other States have moved away from an insurance-based funding model to property-based funding to redress inequity, improve economic efficiency and correct consumer behaviour issues posed by the underinsured and uninsured. 

This submission is limited to the Inquiry Term of Reference (c) and canvasses four possible funding options for the New South Wales Fire and Emergency Services Levy.  A broad-based property levy (option 3) is the preferred option as it offers the most equitable and efficient solution.  Within this option there are levels of complexity for the classifications of property and use to set the levy amount.  These sub-options are also considered in this submission.