ICA commends New South Wales Gov’t for ESL reform

The abolition of the ESL on insurance is expected to result in a 15% lower average cost for home cover and around 23% lower for business cover.

The Insurance Council of Australia (ICA) has commended the New South Wales Government for its decision to reform the Emergency Services Levy (ESL), which currently adds up to 18% to home insurance premiums and around 30% to commercial premiums to fund emergency services. 

The ESL has been criticized for penalising those who pay insurance during a cost-of-living crunch and increasing extreme weather events necessitating coverage.

The abolition of the ESL on insurance is expected to result in a 15% lower average cost for home cover and around 23% lower for business cover. 

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Currently, New South Wales insurance customers pay about three times the amount of state taxes compared to Victorian insurance customers. 

The ICA has campaigned for over a decade for the removal of the tax and, leading up to the State election, ran a campaign advocating for a fairer way to fund emergency services.

Research conducted at that time showed strong public support (65%) for removing the ESL and replacing it with an alternative funding model.