WSFM 101.7
Pure Gold

Now Playing:

Listen on

NSW Homeowners Can Expect To Pay ANOTHER New Tax

NSW property owners will have to wait to find out how much they will be slugged under a new tax designed to replace the emergency services levy on household insurance policies.

Treasurer Gladys Berejiklian said the new tax, to be paid alongside council rates, would cost about $160 on average a year, but the exact amount paid will depend on the size of the property.

The government estimates insurance premiums will fall by about $200 a year because of the change, giving the average property owner a saving of $40.

"It's based on modelling which treasury has done," Ms Berejiklian said.

"All modelling is based on assumptions but we know that on average the vast majority who pay insurance will be better off."

To ensure that insurers pass on the cost savings to consumers, the government has appointed former consumer watchdog boss Allan Fels to monitor the policy change.

Reduced insurance premiums will encourage more NSW residents to take out household insurance, Ms Berejiklian said.

She said the reform had been done successfully in every other mainland Australian state.

Emergency Services Minister David Elliott said the new tax would prevent people from "shirking" their responsibility to the fire and SES services.

"This reform is to make sure those shirkers are brought into the system, that those shirkers are paying their fair share," he told reporters.

The tax takes effect from July 1, 2017.


Share this: