The new levy to be added to your council rates

Posted August 20th, 2019 by admin and filed in 苏州美甲美睫培训
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NSW home owners will learn from May 1 exactly how much they will pay each year to fund fire and emergency services under a new system that will see an average $185 added to council rates notices.
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Treasurer Dominic Perrottet will on Tuesday introduce legislation to usher in the Fire and Emergency Services Levy from July 1.

Currently three-quarters of the annual $950 million cost of funding Fire and Rescue NSW, the Rural Fire Service and the State Emergency Service is funded via a tax on insurance companies, passed onto customers via higher premiums.

The balance is funded by the state and a tax on councils.

The new system instead charges all landowners in NSW an annual levy.

For residential landowners and owners of “public benefit land” such as churches and scout halls, there will be an annual fixed charge is $100 plus an additional amount calculated on the unimproved land value determined by the NSW Valuer-General.

For farms, industrial and commercial landholders the fixed charge will be $200 plus the additional amount.

The precise amount charged to each landowner will be determined by the size of each year’s emergency services budget but the government is estimating an average levy of about $185.

Land owners will be able to visit the fire services and emergency services levy website to calculate their annual payment from May 1 – the date at which the 2017-18 emergency service budget will be known.

The shift to a levy on land was recommended by a 2013 parliamentary inquiry which found that 36 per cent – or 810,000 landowners – who do not have home contents insurance would pay the levy for the first time.

But the government says for fully-insured homeowners the fire services levy contribution should drop from an annual average $233 to $185, for a saving of $47 a year.

Professor Allan Fels has been appointed as NSW Emergency Services Levy Insurance Monitor to ensure insurers pass on savings to customers.

The government estimates the proportion of the emergency services budget raised from residential land will be 58.1 per cent. For commercial land it will be 26.7 per cent, industrial land 10.4 per cent, farmland 4.6 per cent and public benefit land 0.3 per cent.

The proportion contributed by a levy on residential land and farm land will be the same as under the old system, while the proportion from public benefit land will fall from 0.8 per cent.

The proportion from industrial and commercial land – 37.1 per cent – increases slightly from the existing 36.6 per cent.

Other changes to the green slip system to be announced on Tuesday include limiting compensation awarded to people with whiplash and minor injuries to six months and capping lost earnings claims by those with serious injuries to two years.

The scheme will also be extended to cover motorists who are at fault in an accident, but their benefits will only be covered for six months.

Seriously injured motorists who are not at fault in accidents will continue to be able to claim lump sum compensation in addition to income and medical benefits.

NSW motorists have the highest premium costs in the country but only 45 cents in every dollar paid for each green slip returns to people injured on the road with the balance going to legal fees, administration costs and insurer profits.

A bill will be introduced to parliament this week and, if approved, the new scheme is expected to take effect by December.

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