Insurance: fire services levy
Mr DELAHUNTY (Lowan) -- The Brumby government must change the way it collects funds by using the fire service levy (FSL) to pay the costs of running the Country Fire Authority, the Metropolitan Fire Brigade and the State Emergency Service.
As of January next, the FSL will increase from 58 per cent to 63 (NOW 68%and rising) per cent. Only four years ago it was 40 per cent. This means government taxes will increase insurance premiums by about 112 per cent. Next year a commercial building in country Victoria, for example, will pay a $1000 insurance premium, a terrorism levy of $20, a fire services levy of $642.85, GST of $166.33, and stamp duty -- set at 10 per cent -- of $182.96. The total cost now is $2012.54.
Many people, including independent retirees, believe that the state government is double dipping or triple dipping with these taxes. Queensland, South Australia, Western Australia and the Australian Capital Territory have all abandoned premium-based levies because many escape their obligations by way of underinsuring or not insuring at all. This is a hot issue because the current system penalises people who adequately insure.
Victoria has the highest levies in the world on insurance premiums, and country Victorians support changing from insurance levies to a property-based system, which is what The Nationals have proposed. Victoria must develop a more equitable funding mechanism for our very important fire services. The fire season is approaching, and I wish the Country Fire Authority volunteers all the best.
Mr DELAHUNTY (Lowan) -- The Brumby government must change the way it collects funds by using the fire service levy (FSL) to pay the costs of running the Country Fire Authority, the Metropolitan Fire Brigade and the State Emergency Service.
As of January next, the FSL will increase from 58 per cent to 63 (NOW 68%and rising) per cent. Only four years ago it was 40 per cent. This means government taxes will increase insurance premiums by about 112 per cent. Next year a commercial building in country Victoria, for example, will pay a $1000 insurance premium, a terrorism levy of $20, a fire services levy of $642.85, GST of $166.33, and stamp duty -- set at 10 per cent -- of $182.96. The total cost now is $2012.54.
Many people, including independent retirees, believe that the state government is double dipping or triple dipping with these taxes. Queensland, South Australia, Western Australia and the Australian Capital Territory have all abandoned premium-based levies because many escape their obligations by way of underinsuring or not insuring at all. This is a hot issue because the current system penalises people who adequately insure.
Victoria has the highest levies in the world on insurance premiums, and country Victorians support changing from insurance levies to a property-based system, which is what The Nationals have proposed. Victoria must develop a more equitable funding mechanism for our very important fire services. The fire season is approaching, and I wish the Country Fire Authority volunteers all the best.
Will Mr Brumby ever get the message?
(My words in red.)
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