The proposed introduction of a new Fire and Emergency Services Levy has been put on hold with the NSW Government arguing that new modelling has indicated that the new system would have had an unexpected and unfair impact on a range of land owners, including the owners of some commercial and industrial property. It is even possible the levy will be abandoned altogether.
This is great news for those who own non-urban blocks in North Arm Cove as they would have been hit by at least the base rate of $100 even though the land’s value is very low and they can’t build on it. These owners have every reason to celebrate the postponement – and possible abandonment – of the new levy.
This levy, which would have been added to council rate notices, had originally been due to come into effect on July 1 (see report on this site dated 30 April) and would have replaced the Emergency Services Levy that has historically been added to home insurance policies.
The rate of the levy for homeowners had been set at a fixed base amount of $100 plus $21.90 for every $100,000 of the unimproved capital value of your property, as determined by the latest valuation by the NSW Valuer General. For example, a homeowner with an unimproved capital value of $350,000 would have paid a levy of $100 plus 3.5 x $21.90, for a total of $176.65.
Those who stood to benefit from the new system would have been those whose Emergency Services Levy on their home insurance policies was higher than the new levy. The state government had estimated that the average homeowner with full home and contents insurance would have been almost $50 a year better off due to the abolition of the existing Emergency Services Levy.
As argued in this site’s previous report, one of the main group of losers would have consisted of those who own vacant land. For while they would have been eligible for a 50 per cent discount they would have had to pay the levy even though they have no house on their land, and so no valuable asset to protect or repair in an emergency. What’s more, in order to get the discount such landowners would have needed to apply to the local council to have their property classified as vacant land.
As already noted the new levy would have had a particularly unfair impact on the owners of the Cove’s non-urban blocks. All will no doubt be hoping that the proposed new system is scrapped entirely.
