Media release – Felix Ellis, Minister for Police, Fire and Emergency Management, 14 February 2024
No new fire levy
The Rockliff Liberal Government has this morning paused the working group tasked with reforming the fire levies.
Importantly we remain steadfast in our commitment to progressing the important governance and structural changes to our fire and emergency service.
Minister for Police, Fire and Emergency Management Felix Ellis thanked representatives from business, industry, local government, unions and community leaders who have participated in the working group.
“We all agreed that fire, floods, and storms pose an increasing threat to Tasmania and that contemporary governance structures are required to deliver this,” Minister Ellis said.
“There is no unanimous agreement the design of a new funding model, despite constructive and positive conversations and engagement.
“We will always listen to Tasmanians and strive to be fair to households, fair to business, fair to our regions and also fair to our emergency services so they can save lives.
“We will not be changing the fire service levy model without agreement.
“We thank Tasmanians for their input through the consultation of the Fire and Emergency Services Bill.”
Media release – Insurance Council of Australia (ICA), 14 February 2024
Fire Services Levy decision will leave Tasmania the last tax standing
The Insurance Council of Australia (ICA) today said the decision by the Tasmanian Government to ‘pause’ its work to reform the Fire Services Levy (FSL) was profoundly disappointing and would leave the island state as the only jurisdiction still to tax insurance customers to pay for fire and emergency services.
The FSL adds up to 28 per cent to the cost of a diverse range of commercial insurance policies, but with a bias towards those who prudently seek financial protection against the risk of damage to their assets by fire.
The FSL adds to the cost of doing business in Tasmania and has delivered windfall gains to the Government in recent years.
According to State Fire Commission data, revenue collected from insurance customers went from $33.4 million in 2021-22 to $41.8 million in 2022-23, a jump of 25 per cent in just one year.
The same data shows that the tax take from the FSL has almost doubled since 2018-19, when it collected just $21.4 million.
Every other state has abolished or is in the process of abolishing their fire and emergency services levies on insurance.
The ICA encourages the next Tasmanian Government to continue to work with stakeholders to abolish the FSL on insurance as recommended by the Blake review and find a fairer way to find fire and emergency services.
Quote attributable to ICA CEO Andrew Hall:
Despite years of reviews, consultations, and overwhelming evidence demonstrating the levy’s unfairness and inefficiency, Tasmanians remain stuck with this outdated model of revenue raising.
Every other state has abolished or has committed to abolish similar levies leaving Tasmania as the last tax standing, further disadvantaging its businesses and their customers.
Not only is the FSL unfair, but it also discourages proper insurance coverage.
Abolishing it would enhance affordability and encourage more businesses to adequately insure their assets, ultimately benefiting the entire community.
We strongly urge the next Tasmanian Government to continue to work to abolish this unfair tax on insurance customers in the state.
