There are still questions that need answers when it comes to the state government’s decision to pass the cost of emergency services onto ratepayers across NSW.
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From July 1, the Rural Fire Service, State Emergency Service and Fire and Rescue NSW will no longer receive money from a levy included in insurance premiums.
Instead, a new cost will be added to council rates, which are paid by anyone in NSW who owns a home, business or agricultural property.
The theory behind the change is to bring NSW in line with other states and broaden the funding base from those who choose to pay for insurance to those who own property.
Cessnock MP Clayton Barr is right when he says there will be winners and losers as a result. But just who will win and who will lose remains to be seen. To know that, we need more details.
While it’s been publicised that the change will mean a drop of about $233 for insurance premiums, that means little if the numbers don’t stack up – and we need to see the other side of this equation before we can work that out. But the government won’t release the expected increase in council rates until the end of April.
No doubt, a home owner who has chosen not to purchase insurance isn’t going to be happy when they are slugged with a rate rise.
Some might think it’s fair to broaden the funding base so more people pay a share for essential emergency services. After all, these are services we all rely on in desperate times.
But there’s another school of thought that says this change will hurt people who are already disadvantaged in our community.
This is especially worth some thought in a place like the Lower Hunter where disadvantage is easy to find.
Many people who choose not to pay insurance do so for a reason. To them, being hit with an extra cost like this would hardly seem fair.
The government’s official Fire and Emergency Services Levy website explains that the change will mean, overall, a fully insured homeowner will save about $47 a year – taking into account the cost tacked onto rates. But until the government releases the exact levy rates, those figures can’t be counted on as gospel.
Ultimately, the clock is ticking towards a change that will affect a lot of people and more details need to be released to understand the true impact.