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Update on the reform of the New South Wales Emergency Services Levy (ESL)
On 30 May 2017, the NSW State Government announced it would defer the introduction of the Fire and Emergency Services Levy on council rates (therefore deferring the removal of the ESL from insurance premiums). Over the 2016 – 2017 financial year, we progressively removed ESL - also referred to as FSL (Fire Services Levy) - from insurance premiums. This deferral means that we have now recommenced collection of ESL via relevant insurance premiums.
What is ESL used for?
As a general insurer, we are currently obliged to provide funding to the NSW State Government for emergency services. We (and other general insurers) collect ESL to help pay for the NSW Emergency Services, including Fire and Rescue NSW, the NSW Rural Fire Services and the NSW State Emergency Services.
What does this mean for you?
You will again see ESL being charged as part of certain insurance premiums, including home, contents, motor and commercial property. If you have paid your insurance premium without an ESL charge and make a change during the policy term, you will be charged ESL on any additional premium that is generated as a result of the change.
TOTAL RETAIL PREMIUM
Disclaimer: The above example is calculated based on an ESL rate of 15.5%. We do change the ESL rate from time to time.
Please get in touch if you would like further information.
If you have any questions about the ESL, please contact us on 13 10 10.