NIBA condemns latest round of increases to the fire services levy
The fire services levy has increased again and comes just weeks after it was revealed 30 per cent of homes in the Victorian bushfires were not insured, according to the National Insurance Brokers Association (NIBA).
NIBA has condemned the latest round of increases to the fire services levy, which it says has increased four times since March last year, with insurance taxes now doubling the cost of some premiums.
NIBA said the levy on commercial premiums in New South Wales has been raised from 36 per cent to 40 per cent, while the levy for householders moved from 19 per cent to 22 per cent.
In Victoria the levy has increased five percentage points to 68 per cent for rural commercial premiums, while in metropolitan areas the levy on commercial premiums has increased to 51 per cent, up from 48 per cent.
For householders the levy has increased by 2 per cent to 26 per cent in county Victoria, and to 21 per cent from 20 per cent in urban areas in Victoria. The levy remains unchanged in Tasmania.
The insurance industry is being used as a tax collector for state governments, NIBA chief executive Noel Pettersen said.
“There’s no other place on earth where you pay more for taxes and charges for every dollar you pay in premium,” Pettersen said.
Pettersen said states other than Victoria have already switched to a fire services levy system based on local council property rates, which had resulted in much lower insurance premiums.
“A property-based system has the added benefit of reducing the cost of insurance, which we believe will encourage households and businesses to insure more prudently and help deal with the issues of non-insurance and underinsurance,” Pettersen said.
Recommended for you
The Financial Services and Credit Panel has made a written direction after advice regarding non-concessional contributions meant an individual was forced to withdraw over $330,000 from their super.
With Insignia Financial suffering a cyber attack on its Expand platform, this can potentially have a negative impact on the two private equity bids currently in play for the firm.
State Street Global Advisors has made an equity investment in Ethic, a platform helping financial advisers to produce bespoke portfolios, reflecting the greater client demand for customised portfolios.
WT Financial’s new entity with Merchant, Investco, has entered into a heads of agreement to merge three financial advice firms.
