NSW apartment owners could be paying less for insurance next time they renew their policies due to the government’s decision to scrap the Emergency Services Levy (ESL).
And since all strata owners are legally obliged to contribute to building insurance through their levies, and many if not most also have home and contents insurance, this could be a double benefit.
The NSW government announced the plan to scrap the ESL this week, although no date has been set for ending the tax used to fund emergency services such as the fire, ambulance and police service in the state, as well as the State Emergency Service (SES).
The Insurance Council of Australia (ICA) says the removal of the ESL could save home owners up to 15 percent of their premiums and businesses as much as 23 per cent.
Strata owners may well save somewhere between the two figures although the numbers have yet to be crunched. Strata managers’ professional body Strata Community Association (SCA) has welcomed the announcement saying the reform should deliver welcome relief for millions of strata consumers.
“It’s very welcome that the NSW Government has stepped up to the plate to reduce levies on strata owners, which have made up nearly 40 per cent of the premium price in NSW on average,” SCA National President Chris Duggan said.
“Strata insurance is a compulsory product, and many of our consumers have been hit hard by the recent hardening insurance market.
“We commend the ICA for their work on this issue and their work on other aligned advocacy issues for strata consumers.”