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I understand that from July 1st, the annual fire services levy will be collected via council rates rather than via buildings insurance. It is stated by Treasury NSW that this will amount to a saving for homeowners. However for those of us who live in strata schemes it would seem to be the opposite. Our 8 unit scheme pays around $480 pa via insurance for the fire levy-i.e. $80 per unit. The average cost to individual ratepayers from July 1st is being quoted as anything from $180 to $450, depending on the source (i.e. treasury v FSU). Either way, it seems to me that if you live in a strata scheme you are going to be paying a lot more. Has anyone got further information on this?
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Owner’s Corporation insurance isn’t the only type of insurance which attracts the Fire Services Levy. e.g. it is levied on my contents insurance policy. Overall I’ll see a payment reduction once the changes come into effect.
More info:
https://fireandemergencyserviceslevy.nsw.gov.au/
My insurance policy renewal arrived with an explanatory note. You’ll probably find the same with your OC insurance policy.
Oh no..I can’t believe this! Eventually I’ll be living in the gutter…
I have just chased this all the way to the department of finance and they confirm what Tharra has written above.
The levy will come off all the insurances that you currently hold (if they have the levy) and a charge will be redistributed to you on your rates bill, according to your Unit Entitlements.
The man from the Ministry says some people will pay less and some may pay more but the difference will be minimal. Here’s a link to the relevant NSW gov page.
FYI: The intention is to make sure that those people who don’t have home insurance still pay their share for fire services.
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@Kendle said:
I will be delighted if the amount added to my rates annually is less than this but all the information available indicates that it will be more than thisWhat information is this? Got a link?
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Councils already contribute to the operation of fire brigades, so I guess this is recouped transparently through rates.
Perhaps this amount will now be incorporated into the new levy, with an equivalent reduction in the residual rates?
Calculate your FESL here:
https://fesl.nsw.gov.au/rates_and_calculator#130412
Mine will reduce slightly.
@Kendle said:
My rates levy will be $178 whilst I am currently paying $133 via my various insurances. $50 increase…but better than I’d fearedSeems high
Are you calcualting by the lower land value as instructed here: https://fesl.nsw.gov.au/rates_and_calculator#130412 ?
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@Kendle said:
Watch out for your contents renewal. Mine due on 24th June, 6 days before FSL comes off insurance, still includes the full FSL of (for me) $72. If i leave the renewal for 7 days i will therefore save the $72..but have no cover for 6 days. Worth it?According to the FESL website
In each financial year, landowners will only make a single contribution to the cost of emergency services.
When insurance on a property is renewed at any time during 2016-17, the insurance‑based emergency services levy is the landowner’s contribution for the twelve months ending in June 2017.
When the FESL commences in July 2017, landowners will contribute to fire and emergency services funding for 2017-18. They will have the option of paying the FESL quarterly, to help spread the cost through the year.
So in theory it would seem you could owe this money whether you renew your insurance or not, as you have had the benefit of insurance for almost 12 months of the FY.
OK this is what you get when a real journalist gets their teeth into the subject: Tough sell for new tax
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