The NSW State Government is in the process of introducing a new Fire and Emergency Services Property Levy.
What is the Fire and Emergency Service Property Levy?
The Fire and Emergency Services Property Levy is used to fund essential emergency services providers such as NSW Fire and Rescue, the Rural Fire Service, and the SES. Currently, these services are partially funded by a levy on your insurance premiums. The NSW State Government believes the current system is unfair if you do not insure your home you do not contribute towards the levy and the funding of emergency services. That is a good point.
A new system is to be introduced this year. The Fire and Emergency Service Property Levy will be levied on all property owners (business, residential and strata units). The NSW Government has calculated that homeowners will be better off financially and more people will insure their properties.
How will the New Levy Impact Lane Cove Residents?
Here is the catch: and it will impact Lane Cove property owners. The levy will be based on the Valuer General’s Unimproved Land Value of your property. Lane Cove residents would recently have received a notice from the Valuer General advising them of the unimproved value of their land. The ITC family was stunned at the huge increase from the last Valuer General’s valuation. You can object to the valuation, but unless you have several properties and need to worry about paying Land Tax, most people do not even give the Valuer General’s valuation advice a second glance. If we’d had known that a new levy was to be introduced and calculated on the VG’s valuation we might have given more thought to the valuation.
NSW Treasurer Dominic Perrottet says this levy is currently costing the average fully-insured household $233 per year, which will no longer be paid under his new FESL. So insurance will become cheaper. The Treasurer also claims that the average fully-insured residential property owner will save $47 per year (the remaining $186 being the cost of the new FESL).The problem is that the Government’s FESL will be based on unimproved land values set by the Valuer-General and the $47 saving is based, by our reckoning, on an unimproved residential land value of about $330,000.To put that into context, the Valuer-General’s average unimproved residential land value across NSW is $572,000, and in Sydney, it is $902,000.
At this stage, it is not possible to calculate the FESL levy as the NSW Government has not released the rates. It is highly likely that Lane Cove residents will pay more when the new levy is introduced. The new levy will be included in your council rates bill.
Have you heard about the Fire and Emergency Service Levy? Do you pay much notice to your home’s Valuer General Valuation?
Do you have a local issue you would like help with? ITC is here to help just email us at [email protected]
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