Good insurance news for NSW music companies
Great news for music venues across New South Wales with the State Governments decision to overhaul the Emergency Services Levy (ESL).
The ESL currently imposes up to 18% on home insurance premiums and approximately 30% on commercial premiums to finance emergency services.
This tax disproportionately affects those who require insurance especially small business. New South Wales insurance customers currently bear a tax burden nearly three times greater than their Victorian counterparts.
In alignment with other mainland states, New South Wales is taking a crucial step towards eliminating similar levies, with Tasmania also initiating a process to reform its levy applicable to commercial insurance.
Insurance Council of Australia (ICA) CEO Andrew Hall states, “Today’s announcement to reform the ESL and find a fairer and more equitable way to fund emergency services is great news for anyone who takes out insurance in Australia’s largest state. It clearly demonstrates the Minns Government understands the impact of this tax on the State’s capacity to recover from extreme weather events, like last year’s record-breaking floods. Reforming the ESL will be a major win for insurance affordability in New South Wales, an issue that is being discussed around kitchen tables and in small businesses around the State.”
The ICA has been advocating for over a decade for the removal of this tax and, leading up to the March State election, ran a communication campaign advocating for a “Fairer Way” to fund emergency services.
The elimination of the ESL on insurance is anticipated to result in an average reduction of up to 15% for home insurance and approximately 23% for business insurance.
A fantastic result especially as music venues struggle with soaring public liability premiums.
Statement from Insurance Council here
NSW Government Press Release here