Historic fire services levy reform passes Parliament

The Victorian Coalition Government’s fire services legislation is set to become law after it today passed the Victorian Upper House.

The changes will see the inequitable insurance-based fire services levy abolished from 1 July 2013 and a fairer, more transparent property-based levy introduced.

Treasurer Kim Wells said the passing of the legislation through Parliament was an important milestone for Victoria.

“The abolition of the fire services levy was an important election commitment and a recommendation of both the Bushfires Royal Commission and the Henry Tax Review,” Mr Wells said.

“It is also, arguably, the most important state taxation reform undertaken in Victoria since the early 1970s.

“Victorians have been calling for this change for many years and the Coalition Government has long acknowledged that the existing system was unfair and lacked transparency.

“The Coalition Government’s reforms will ensure everyone contributes a fair share to the fire services, not just those who adequately insure their properties,” Mr Wells said.

“Households and businesses across Victoria will save more than $100 million a year, with a $20 million concession scheme for pensioners.

“The unfair tax-on-tax, which slugged people for GST and stamp duty on the fire services levy component of their bill, will also be abolished. This resulted in some people, particularly those in regional Victoria, paying up to double for their insurance.”

Mr Wells said the reforms were already starting to take effect, with some insurance companies tapering their insurance premiums so customers only paid for the fire services levy for the months they were covered under the current scheme.

“Now the Fire Service Property Levy Bill has been passed, legislation will soon be introduced to Parliament to establish new consumer protection powers,” Mr Wells said.

“Those powers will give the Fire Services Monitor the power to investigate and impose penalties on insurance companies who engage in false, misleading or deceptive conduct or try to exploit customers.”