NSW ESL UPDATE
On 30 May 2017 the NSW Government announced that the NSW Emergency Services Levy Reform which was to move the emergency services funding from an insurance-based model to a property-based model by 1 July 2017 was to be deferred, subject to further review. This means that until this is done, insurance companies will remain responsible for collecting the NSW Emergency Services Levy (“ESL”).
The ESL is an amount included by an insurance company in a premium payable for the issue of a regulated contract of insurance for the purpose of recouping emergency service contributions to be paid by the insurance company and which are used to fund emergency services in NSW in the financial year in which the contract of insurance commences. If the ESL component is not shown separately to the other basic premium components you can ask us for details.
Insurers are prohibited from increasing other base premium components (excluding taxes) on account of the ESL reform and the Emergency Services Levy Insurance Monitor is responsible for checking compliance with this and taking action for non-compliance. You can ask us for more information about the above or any other base premium component changes or contact the Monitor if you have any concerns. For details go to www.eslinsurancemonitor.nsw.gov.au.