Help reform the way the state’s emergency services are funded.
On 16 November 2023, the NSW Government announced its commitment to reform the way the state’s emergency services are funded. Three key objectives of the reform are:
- Reduce insurance costs for households by spreading the levy across all property owners;
- Protect pensioners and vulnerable members of the community; and
- Ensure a revenue-neutral model that sustainably funds our emergency services agencies.
This consultation paper is the beginning of public consultations to inform the design, scope, features and transition arrangements for reforming the emergency services funding system.
Currently, NSW’s emergency services are funded by the Emergency Services Levy on insurance companies (73.7 per cent), local governments (11.7 per cent) and the State Government (14.6 per cent). These fund the costs of Fire and Rescue NSW, NSW Rural Fire Service and the NSW State Emergency Service.
Tell us what you think
We are seeking your feedback on the consultation paper. You can provide your feedback by typing or uploading your submission. Share your feedback by 5pm Wednesday 22 May 2024.
Important information
The Emergency Services Levy on insurance provides funding to cover services for everyone but is only paid by insured households and businesses.
The funding requirements of the emergency services are rising with climate change and the growing instances of natural disasters, increasing the Emergency Services Levy and making insurance more unaffordable.
The existing Emergency Services Levy increases insurance premiums in NSW by around 18 per cent for residential property and around 34 per cent for commercial property. Unaffordable insurance increases the cost pressures for households and businesses with some form of insurance. This contributes to higher non-insurance in NSW than other states and an increasing number of households are left at risk. NSW businesses have also ranked insurance costs as one of their top concerns in business conditions surveys conducted by Business NSW in recent years.
With climate-related disasters becoming more frequent, intense and unpredictable, the need for emergency prevention and response is growing. Finding a sustainable, broad and fair system is vital to ensuring the best emergency services to protect everyone.
The NSW Government has committed to reform the funding of emergency services to resource the fight against the increasing instances of natural disasters, and to spread the costs more fairly among property owners.
