NSW Set to Remove Emergency Services Levy

Published: 21/02/2024

NSW Set to Remove Emergency Services Levy

In a bid to address insurance costs, particularly in disaster-prone areas, the NSW Government unveiled an overhaul of the Emergency Services Levy (ESL) in consultation with insurance and retail industry experts.

At a time when insurance costs are increasing nationwide, this reform is poised to provide much needed relief for many home and business owners.

The ESL, currently adding 18% to household insurance and up to 30% for businesses, has long burdened property owners, particularly in disaster-prone areas. With escalating natural disasters further squeezing insurance affordability, the reform promises welcome relief.

The proposed ESL reform has gained widespread support, including from the National Insurance Brokers Association (NIBA), with some criticising the current model for penalising those who invest in insurance to safeguard their assets. The decision to remove the ESL from insurance policies is a crucial step in easing the cost-of-living pressures faced by households and businesses.

The current system, largely funded by insurance premiums, is being replaced by a 'state-wide contribution' model. This aims to incentivise responsible risk management and help make insurance affordable for all.

What can we expect?

  • Lower Costs - The Insurance Council of Australia predicts up to 15% cheaper home insurance and up to 23% for businesses.
  • Fairer System - Removing the levy from insurance removes the penalty for being responsible and encourages broader participation in risk management.
  • Business Lifeline - Struggling businesses, often squeezed by insurance costs, may find relief and avoid closure.

The NSW Government plans to engage with industry stakeholders to chart a path toward a more sustainable funding model. This reform brings NSW closer to other states with broader-based funding models for emergency services. It also offers hope for communities struggling with affordability and strengthens the state's preparedness for future disasters.

How Coverforce can help

Our team of experienced brokers can help assess your risks and provide personalised advice on the right insurance program to protect your business and assets.

In the event of a claim, we are on hand to provide advice and minimise disruption to your business. Our highly experienced claims team will work with the insurer on your behalf to ensure you receive your full entitlement without undue delay.

For more information, contact our expert team of brokers at your local Coverforce Office today.

The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Coverforce directly.


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