NSW fire levy scrapped due to unfairness for landholders
The NSW Government has backed down on a new fire and emergency services levy which was to come into effect July 1.
It admits its modelling was wrong with extra costs on fully insured small and medium businesses likely to be unfair.
The new levy was set to replace the Emergency Services Levy on insurance policies.
All landowners would have paid a contribution to fire and emergency services starting from around $250 a year with the levy attached to council rates.
Currently only those who are insured pay anything towards fire protection.
Sydney-based commercial agency John Hill & Co, gave the example of an industrial property in Botany where the new levy would be $77,000 compared to $12,000, an increase of 526 per cent.
Premier Gladys Berejiklian said the new system aimed to make it fairer for all, but the modelling received from Treasury was wrong.
"It's become apparent to us that when we've looked at the advice on the modelling for industrial and commercial but [then] looked at the examples that were coming in, there is a mismatch," the Premier said.
The Premier also defended the backdown.
"What is the point of doing something if it doesn't make the system fairer?" she said.
The Government will have to introduce legislation to stop the levy coming into place on July 1.
