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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