Government ESL Backflip Creates Client Concern
The recent decision by the New South Wales State Government to reinstate the emergency services levy (ESL) continues to cause client concerns.
Since the recent decision, our National Insurance Industry Body has met with the New South Wales state treasurer Dominic Perrottet, who confirmed the decision to continue with the ESL on insurance policies and said the Government plans to introduce legislation later this month to reinstate the levy.
This decision is just four weeks away from when the previously proposed changes were due to take place and the Government’s backflip on the ESL has created a number of concerns in the business community.
The Insurance industry reacted with shock and disappointment to the news that the Government had decided against reducing taxes on insurance. With ESL, stamp duties and GST, more than 30% of household insurance premiums and 40% of commercial insurance property premiums go straight to the Government.
In the interim, while discussions continue to establish a firmer position, WSIB are keeping our clients informed on events as they unfold and will ensure you remain our first priority. However we expect a continuation of the current ESL arrangements until the Government makes specifics known in the near future.