The NSW Emergency Services Levy (ESL) is removed from insurance premiums after 30 June 2017, and will be replaced by a property levy payable with council rates.
NIBA has once again urged all members to ensure that no emergency services levy is collected on insurance premiums for policies, or renewals of policies, taking effect on or after 1 July 2017. Insurers and brokers are going to have to comply with the obligations in the section 30 Notice published by the ESL Monitor, and guidance has been provided to NIBA Members about this.
The obligations will apply to renewals of policies for residential building insurance, residential contents insurance and any combination of these policies, during the 2017/2018 financial year – ie renewals taking effect on and after 1 July 2017.
Please note there are significant penalties in the ESL Monitor legislation for breaches of the Notice requirements, for collecting ESL on premiums after 1 July 2017, and for making false or misleading statements in relation to this reform.
Clients with questions in relation to the removal of the insurance levy should be referred to the Monitor’s website and clients with questions about the new property levy should be referred to the government’s website.