THE state government is copping heat for a new $160 property tax that some say will prop up the big end of town at the expense of ratepayers.
Treasurer Gladys Berejiklian said collecting the $160 Emergency Services Property Levy via council rates would see the burden of funding the $1.1 billion State Emergency Service, NSW Fire and Rescue, and Rural Fire Service more evenly shared.
Ms Berejiklian said from July 2017 insured property owners would actually save an average of $40 a year thanks to lower insurance premiums, while those without insurance – up to 25 per cent of NSW homeowners – would be forced to pay their share.
But NSW Farmers won’t back the proposal until it is sure rural landowners won’t bear the brunt.
Political opponents also say the move is unfairly weighted towards businesses.
NSW Greens Emergency Services spokesman David Shoebridge said the government’s own 2012 discussion paper showed businesses accounted for 55pc of all emergency service call-outs.
But under the new levy, Mr Shoebridge said business’ annual contribution would drop from 49pc to just 13pc of running costs – effectively a $250 million subsidy despite the sector using more than half the resources.
Conversely, Mr Shoebridge’s modelling showed residential property owners would see their contribution increase from 45pc to 75pc – a $210m rise – even though residential properties account for just 34pc of call-outs.
Rural land owners, meanwhile, account for 7pc of call-outs but will now stump up 12pc of the costs, or an extra $35m per year.
“This is the Baird Coalition government buddying up to the insurance industry,” Mr Shoebridge said.
The Treasurer said the government’s aim was to keep the current share paid by residential property owners.
However, the NSW Property Council and Shopping Centre Council slammed the levy, while the Fire Brigade Employees' Union was worried the plan would leave the most vulnerable members of the community worse off.
NSW Farmers’ rural affairs spokesperson Sonia O’Keefe said the association supported a contribution from all rate payers, but the levy should reflect the level of service usage.
“In attempting to make the system ‘fairer’, government must make sure rates are directly related to the services used and risks that exist,” Mrs O’Keefe said.
Victoria switched to a fire levy system in 2013 following recommendations from the Royal Commission into the Black Saturday Bushfires to reduce levels of under-insurance.
