Levy change could double your rates - councillor claims

Cowra Shire Councillor Peter Wright has labelled continuing Minns State Government discussions on reforming the Emergency Services Funding System as “a dog’s breakfast”. Council staff have been asked to classify land parcels against new categories established by the NSW Government to inform the design of a new emergency services levy system. The new approach is being developed to charge the revised levy to land owners rather than insurance companies. The levy currently funds Fire and Rescue NSW, the NSW Rural Fire Service and the State Emergency Service. The current emergency services levy meets about 73.7 per cent of the agencies’ funding needs, with the remainder met by the NSW State Government (14.6 per cent) and councils (11.7 per cent). At present the levy is charged to insurance companies, who recover the cost via a surcharge on insurance premiums which increases the costs of insurance premiums by about 18 per cent for residential property and 34 per cent for commercial property. In April, 2024 the NSW Government released a discussion paper on reforming the levy that canvassed options to transition from charging insurance companies, to property owners through local government. Cr Wright claimed if this happens ratepayers’ rate notices could double. Local Government NSW is of the view that the levy must be collected through Revenue NSW and not the state’s councils. “We classified this four or five years ago when they were going to implement this the first time,” Cr Wright said. Classifications however have been revised, councillors were told at their Ordinary November meeting. “It didn’t get up last time, they wanted us to put it on council rate notices,” Cr Wright said questioning how insurance can be captured on a land based rate. “Ratepayers will get a bill as big as their rates at the moment. And there is no guarantee that it will be controllable.” Cr Wright also questioned how much money was “in the coffers” under the current system of collecting the levy. “When they launched it last time it was cancelled at the 11th hour after rate notices went to the Eastern suburbs (of Sydney) and those people saw how much they were going to have to pay. “They complained to their local member and it was hit on the head." “It’s just going to be a dog’s breakfast, the state government should pay for it out of GST and stamp duty,” Cr Wright said. Supporting Cr Wright’s stance, Cr Ruth Fagan provided background stating the levy was previously looked at in 2017 due to a growing problem with natural disasters. “We need to change the way we are funding (emergency services) but I also think those emergency services need to work more closely. That should be part of the survey. “Everybody has separate resources, they all get separately funded, and pay different wages. I think (the levy change) is a move in the right direction but it should come with a big look at how our emergency services operate as well as how they are funded. “They don’t seem to work closely together and in some cases not at all. “Also, Local Government NSW and we as councillors need to say we don’t need to collect this levy, it should be collected by the State Government through Revenue NSW. “We don’t get to allocate it to anything so why should be collect it,” Cr Fagan said.