FINANCIAL FIRE ALARM!!

30 May 2017

The State Government has changed the way fire brigades and other emergency services are financed. Instead of a levy on insurance policies the levy will apply to all properties from 1st July and will be added to Council rates.

The rates are as follows
 
Classification Fixed Rate Variable rate per $100,000 of land value
Residential $100.00 $21.90
Farmland $200.00 $23.50
Public Benefit $100.00 $21.90
Commercial $200.00 $179.10
Industrial $200.00 $268.70

The big loser are the owners of small to medium commercial properties.

Commercial property has always paid above its weight towards the levy. The new levy is based on land value across the board resulting in large increases for smaller properties. We were alerted to the problem when we realised one of our owners is going to be liable for almost $12,000 with the new levy but only paid $1400 fire services levy on his insurance policy previously!
We have gathered a number of examples and lobbied State members of Parliament and Treasury and have also briefed the Real Estate Institute on the problem. Attached is the more detailed summary of the changes and a simple solution. 
We will continue in our efforts on behalf of our clients and will update you on any changes. We also urge owners to contact their own State Members of Parliament.
If you wish to discuss the matter further please contact Sam Hill on 0419 747 440 or email at sam@johnhill.com.au

*UPDATE: FIRE LEVY DEFERRED! | Congratulations NSW Premier for listening. We note that this is a deferral and we will endeavour to keep you all informed of future developments. We will continue to put the argument that the Commercial and Industrial Property sector should be treaty fairly when it comes to any future Levy.

Summary-of-Fire-Levy.pdf