FULLY insured home owners can expect to be about $47 better off per year under state government changes to the way it funds firefighters and the State Emergency Service (SES).
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From July 1, the state’s firefighters and SES will be funded through the property-based Fire and Emergency Services Levy (FESL), rather than the Emergency Services Levy (ESL) which is added to home building, contents, and some motor insurance premiums.
It means that locals will pay the FESL through their council rates, rather than through their insurance premiums.
Under the existing funding system, only insured property owners are helping to pay the cost of having NSW Fire and Rescue, NSW Rural Fire Service (RFS) and the SES protect their community.
Property owners who insure their properties are subsidising households who don’t purchase home and contents insurance.
Insurance Council of Australia CEO Rob Whelan said the FESL was a “fairer, more efficient system” for funding the emergency services.
“No longer will the responsibility for funding these vital services be borne only by households that purchase insurance, but by the entire community,” Mr Whelan said.
“Everyone benefits from these services, and it is only fair that all homeowners contribute to their upkeep.”
Central Coast Council administrator Ian Reynolds said the levy would be clearly identified as a separate item on each household’s rates notice.
“The amount of the FESL for each property will be set by the NSW government and determined by land classifications and unimproved land values,” Mr Reynolds said.
“The NSW Valuer General is responsible for determining unimproved land values, while councils identify which land classification properties fall into.”
Although the levy would be billed and collected by local councils, it would be passed straight to the state government to fund fire and emergency services, he said.
A letter explaining the new levy will be sent to all Central Coast Council ratepayers with their April rates notice.
Ratepayers will also receive a letter from the NSW Valuer General detailing their new land value.
The state government will release details of the levy amounts by April 30 and will provide an online calculator so property owners can compare the new levy with the amount they currently pay through their insurance.
On average, the state government predicts an average saving of $47 per year for fully insured residential properties.
A spokesperson for Central Coast Council said the new land values must also be used for levying council rates from July 1, so there may be an impact on some ratepayers’ rates despite the “rate path freeze” set by the state government for merged councils.