Thursday, 25 May 2023

At its meeting this week, Council resolved to write again to the Treasurer, Shadow Treasurer and other government representatives, calling on the NSW Government to reinstate the Emergency Services Levy subsidy.

The sharp rise in the ESL through a 19.5% increase in the ESL and the removal of the subsidy paid by the NSW Government to offset levy increases in recent years would result in a $3.1 million spike (50% increase) in its cost in the 2023/24 financial year.

The sudden announcement came after Council had finalised its draft 2023/24 financial year budget and started consulting the community on a plan Council can no longer afford to fully fund.

This means Council will now have to look at cutting costs elsewhere to meet this sharp increase in the levy.

The NSW Government has paid an Emergency Services Levy subsidy to councils since 2019/20. The subsidy covered the large increase in the Emergency Services Levy in recent years due to increasing costs following bushfires and floods along funding reforms to workers’ compensation for firefighters with work-related cancers.

In the 2023/24 financial year, Northern Beaches Council’s Emergency Services Levy will increase by $3.1 million, comprising a $1.5 million (19.5%) increase in the levy to $9.3 million, and $1.6 million through the removal of the levy subsidy.

Council resolved to write again to the Treasurer, Shadow Treasurer and other government representatives, the Minister and Shadow Minister for Emergency Services, the Minister and Shadow Minister for Local Government, all members of the crossbench of the NSW Legislative Council and local State Members, the President of Local Government NSW and the Chair of the Independent Pricing and Regulatory Tribunal, calling on the NSW Government to reinstate the Emergency Services Levy subsidy.

About the Emergency Services Levy

The Emergency Services Levy is paid by councils and insurance companies to support NSW emergency services (Fire & Rescue, SES and RFS).

Insurers of property in NSW fund 73.7% of the costs. They collect an Emergency Services Levy from their customers as part of insurance premiums and this is passed onto the NSW Government.

All NSW Councils fund 11.7% of the costs of emergency services. Unlike the insurance industry, councils are not permitted to pass this levy onto our customers through rates notices.