The change, which is being ushered in by the state government, will mean a levy to fund emergency services such as the Rural Fire Service, State Emergency Service and Fire and Rescue NSW will no longer be part of insurance premiums, but will instead be tacked onto council rates.

The government has argued that it will mean the cost of emergency services will be spread more fairly.

It’s not yet known how much the change will increase council rates, but a decision is expected on April 30.

Cessnock MP Clayton Barr said there would be winners and losers as a result of the change.

“The new emergency services levy, to be called FESL (Fire and Emergency Services Levy) is a complex beast,” he said. 

“If the government is making the change then it is highly likely that they themselves are a winner, or that their good mates in insurance are the winners.

“Allegedly, this levy change is not about bringing in more funds for emergency services, so people shouldn’t think of a sudden increase in funding or a sudden increase in services delivered to them.

“The amount collected is, on the surface, intended to be the same – so services will stay the same.”

On its official FESL website, the government said insurance premiums for policies taken out from July 1, 2017, would not include the emergency services levy.

“The cost of an average residential property insurance policy is expected to be around $233 lower than would otherwise be the case as a result of the removal of the Emergency Services Levy (ESL),” according to the website. 

“This will help make insurance more affordable for more people.”

A Maitland City Council spokesman said the state government had not yet determined how much would be added onto rates.

“This levy is currently part of insurance policies, however to bring NSW in line with other states, it will now be included as part of rate notices as a separate charge,” he said.

“All money raised from the FESL will go to the state government.”