Emergency Services funding reform to reduce Strata insurance costs

We are pleased to share the good news that owners in Strata Schemes stand to benefit from the move to a fairer system of funding Emergency Services, involving the removal of the Emergency Services Levy (ESL) currently applied to insurance policies and replacement with the Emergency Services Property Levy (ESPL) paid alongside Council Rates.

Such a change will broaden the base of collection, to the benefit of those who currently insure their properties and therefore bear the cost avoided by those who choose not to insure. Required by legislation to insure their buildings, Strata Schemes have long been subsidising non-insurers.

Although the introduction of the ESPL will add a new cost to Strata owners alongside their rates, it is expected that the premium reduction (discussed in the order of 20%) should exceed the ESPL cost, resulting in a net benefit to Strata Schemes and the members of their Owners Corporations.

For more information see the attached release from Strata Community Insurance here: Strata Owners to Benefits from Tax Savings

Post edit: Late May 2017 the NSW government announced an indefinite delay to the reform described above.