Sunday, August 01, 2010

Call to abolish 'inequitable' fire services levy

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A CONTROVERSIAL levy on property and contents insurance which generates hundreds of millions of dollars in funding for the Victorian fire services - as well as millions of dollars in stamp duty for the state government - should be scrapped, according to the royal commission.


It said the levy, which is a vastly higher impost on country home owners and businesses than their metropolitan counterparts, is ''inequitable'' and places ''an unreasonable tax burden on insurance policyholders''. It urged that the fire services levy be replaced with a ''property-based levy''.


The Henry review released this year also urged that it be junked.
A key reason why the fire services levy is controversial in the bush is because of the cascading effect of extra charges that exist on top of the insurance premium. On top of the premium are the fire services levy, the GST and Victorian stamp duty.


Comment:  It's time to scrap the FSL NOW.  
This will become an election issue.

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