Fire Service Levy, Is It a TAX?

As many of you know by now I have been saying that the FSL is an unjust way of collecting money to fund the fire services like the CFA.

Mr Peter Ryan MLA (Leader of The Nationals) has also taken this up for all Victorians. Today he brought this up in Question Time in parliment and I will post Mr Brumby's response here tomorrow.

In the meantime below is the media release from Mr Ryan:

Thursday 30 July 2009
PREMIER SHOULD COOPERATE ON FIRE SERVICES LEVY

The Premier should fully cooperate with the Federal Government Henry Review into Australia’s Future Tax System which, amongst other things, will investigate the Fire Services Levy (FSL), Shadow Minister for Bushfire Response and Leader of The Nationals Peter Ryan said today.



Mr Ryan said under the current Labor Government funding for fire services such as the Country Fire Authority (CFA) was accumulated through a tax on insurance premiums. “The Victorian Liberal Nationals Coalition wrote to the Henry Review in May to request the inequity of the FSL be investigated as part of the review,” Mr Ryan said. “John Brumby has refused to refer the FSL to the Henry Review because he claims it’s ‘not a tax’ but his premise has now been embarrassingly rebuffed by the Review.



During State Parliament Question Time today Mr Ryan said a letter he received on the 20 July 2009 from the Henry Review confirmed it would be reviewing the FSL, stating: “I can assure you that the panel is reviewing, along with other taxes and transfers, the FSL imposed on insurance companies” Rob Heferen, Head of Secretariat, Henry Review. “It appears that everyone except John Brumby acknowledges that his government’s Fire Services Levy is a tax,” Mr Ryan said.



Mr Ryan called on the Premier to put aside his personal prejudice on the FSL and ensure Victoria cooperated fully with the Henry Review. “The Fire Services Levy as it stands is unfair and inequitable for those residents and small businesses that insure their premises,” Mr Ryan said. “Victoria currently has the highest taxes on property insurance in Australia and Victorians pay as much as $68 in addition to every $100 payable in premiums.



“The current system also encourages home owners not to insure because it’s too expensive – evidence shows approximately one-third of houses damaged or destroyed in this year’s horrific bushfires were not insured.”



Mr Ryan said while it was vital the CFA was not short-changed, the Opposition believed the FSL model needed urgent review to find a fairer system to adequately fund Victoria’s fire services.