Tuesday, July 03, 2012

Victoria delays FSL legislation until August

The Victorian Government will not introduce the legislation to abolish the state’s fire services levy (FSL) until the next sitting of the state’s parliament in mid-August.

The delay was expected by the insurance industry, which had seen no signs of the legislation being introduced to start on July 1, and Parliament last week went into recess until August 14.

The delay will not affect insurers’ plans to raise the FSL in its final year before all property holders are levied to fund the country and metropolitan fire brigades.


Policyholders outside metropolitan Melbourne have keenly anticipated the removal of the FSL because they are facing a levy of 95% on top of their premiums to fund extra investment in the Country Fire Authority.

The Victorian Farmers Federation (VFF) says the State Government has left more than 2 million farmers, businesses and households “in limbo” after failing to meet its promise to phase out the levy from July 1.

VFF President Peter Tuohey says for every $1000 of insurance premium, a farmer must pay FSL of $850 to $950 plus GST and stamp duty.

“We’re sick of paying this unfair levy on our insurance, while those who don’t insure or underinsure get a free ride,” he said.



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