FSL getting hot in NSW

As many of you know by now I believe we need a fair system to fund the CFA. NSW is now grumbling as well!

1746—Treasurer—FIRE SERVICE LEVY

Mr Gay to the Treasurer, Minister for Infrastructure, and Minister for the Hunter—

1. Why does the Government use the method of placing a tax on a tax for Commercial, Rural and Domestic Insurance?
2. Why does the Government not utilise its share of the Federal GST revenue for financing and funding towards the running of the NSW Fire Brigade, as is the case in Queensland, South Australia, Western Australia and the ACT?
3. What transparent and certified record can be produced and tabled for the assurance of the general public that companies and businesses acquiring off shore insurance do in fact contribute their fair and appropriate share to Fire Services and insurance duties?
4. Can you explain why it has been necessary for the Commercial Fire Service Levy to increase by 58.4% in the space of 36 months?
5. Are there any other interstate examples apart from Victoria where citizens and businesses have to pay a 68.83% surcharge of levies and taxes on goods, products or services?
6. Is the Minister aware that the 2003 HIH Royal Commission recommended that the Fire Service Levy be rated and charged in conjunction with the property and Landholders owners shire⁄council rates?
1. Does the Minister agree that this would ensure Residents and business owners and operators would share evenly in the NSW fire service levy budget regardless of whether they are insured through Australian based companies, Off shore, Internally or not insured at all?
2. Will the NSW Labor Government act accordance with citizens and business wishes and implement a fairer system in which to rate and charge the Fire Service Levy?

Answer—

I'm advised:
The Fire Services Levy (FSL), as it is described on insurance policies, is not a New South Wales Government tax but a surcharge that general insurers impose on their customers to recoup the cost of their contribution to the fire services.
The NSW Fire Brigades is funded from statutory contributions from the insurance industry (73.7 percent), local government (12.3 percent) and the State Budget (14 percent). The Government's contribution comes from general revenue which includes GST grants received from the Commonwealth.
A company or business that acquires insurance from an unregistered insurer is required to pay insurance duty under the Duties Act 1997. A number of corporations that insure with offshore insurers directly pay insurance duty to the Office of State Revenue.
On 16 April 2003, the Government announced a review of current and alternative arrangements for the funding of fire fighting services. The inquiry was conducted by the Public Accounts Committee of Parliament which was comprised of Government, Opposition and independent members of Parliament including Gladys Berejiklian and John Turner.
The inquiry reported in 2004, concluding that the current funding arrangements should be retained. The Government accepted this finding of the review.