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Review of Fire Services Levy promised by Coalition

with 5 comments

Source: Sykes Media Release

Nationals Member for Benalla, Bill Sykes has condemned the increase in the Fire Service Levy (FSL) and said it was a disgrace the Brumby Government had not acted to devise a fairer and more equitable system.

Dr Sykes said that in government the Victorian Liberal Nationals Coalition will review the existing Fire Service Levy and implement a fairer system that provides adequate funding for state fire services.

“Failings in the current Fire Service Levy have been recognised by The Insurance Council of Australia who welcomed the announcement that the Victorian Liberal National Coalition in government will review the current fire services funding model. There are fairer models that fund fire services in other states which more evenly distribute the cost of funding fire services.”

Dr Sykes said a review of the FSL would consider the outcomes of the Henry Review of Australia’s taxation system and the Bushfire Royal Commission’s findings.

“The recent announcement of a further five per cent increase in the Fire Services Levy, an already unsatisfactory arrangement has become completely unacceptable,” Dr Sykes said.

The Fire Service Levy, a tax on insurance premiums to fund fire services including the Country Fire Authority (CFA) means that people who insure their home against fire pay for those who do not,” Dr Sykes said.

The increases come in the wake of the Victorian bushfires where 30% of burnt homes were not insured.

The new fees from July are expected to increase the FSL to 26% on households and 68% on businesses in country Victoria whereas Melbourne premiums will increase to 21% and 51% respectively.

Dr Sykes said a country Victorian household premium of $1000 would rise to $1524.60 and on farm items it will rise to $2031.80.

“Given the unfairness of the Fire Services Levy which increases insurance premiums of country Victorians to 68 per cent, it is crucial that the current system be reviewed,” Dr Sykes said.

“John Brumby and Labor refuse to acknowledge the Fire Service Levy is a tax, when it clearly is, and the Premier’s inaction demonstrates his complete disregard for country Victorians.”


Written by Greg Naylor

8 June 2009 at 12:00 am

Posted in Uncategorized

5 Responses

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  1. A fair sysytem is all we want.
    Read my comments on my blog as well at

    Mario Galteri

    8 June 2009 at 8:52 am

  2. It begs the question though, Greg. Was that a core or non-core promise?


    8 June 2009 at 4:50 pm

    • Politics aside, the system used to fund the CFA is just unfair. It does not matter which party is in power but I a glad that someone is doing something about it.
      Do you have insurance on your home and or contents?

      Mario Galteri

      8 June 2009 at 5:42 pm

      • I still smell a non-core promise and yes I am fortunate enough to have both covered by insurance.


        8 June 2009 at 7:04 pm

        • I think it works like this – if the leader promises it, it becomes a core promise … If Bill Sykes promises it, it ia a non-core promise. 😉 Who said anything about core/non-core anyhow?

          Greg Naylor

          8 June 2009 at 11:19 pm

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