MEDIA RELEASE: The Real Estate Institute of NSW (REINSW) has revealed another under-handed NSW Government plan to charge property owners more to offset increasingly “unaffordable” insurance costs.
Buried in the Budget’s explanatory notes is the reference to the NSW Revenue Legislation Amendment Bill 2024, which outlines the NSW Government’s plan to redirect the cost of the Emergency Service Levy (ESL) away from insurance companies to instead be incurred by property owners.
The resourcing requirements for the state’s emergency services are largely funded by the ESL. The growing impacts of climate change and more natural disasters mean these requirements are increasing, making insurance more unaffordable, according to the Bill.
“The Government will remove the ESL on insurers and instead spread a replacement levy across a broad base of property owners,” the Budget Paper reads.
Increasing surcharges for foreign purchasers, increasing the surcharge land tax and freezing the land tax threshold are among the measures proposed.
REINSW says transferring the increased insurance costs of our emergency services to property owners is shocking but unsurprising, given Government’s track record.
“This Government’s solution to the state’s economic woes is clearly and unashamedly singular: property owners must be able to afford it, so they can pay for it,” says REINSW CEO Tim McKibbin.
“If the Bill passes, property owners and property buyers will be charged more so Government can reduce insurance costs. Government’s expectation is that insurance companies, in good faith, will adjust their premiums accordingly.
“More tax on property owners means reduced investment in property. In a housing crisis, this is among the most reckless courses of action,” he says.
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For any further information
Please contact Tim McKibbin, REINSW Chief Executive Officer, 0415 931 013, [email protected]
About REINSW
The Real Estate Institute of New South Wales (REINSW) is the peak industry body for real estate agents and property professionals in NSW. It represents more than 2000 agencies across residential sales, property management, commercial, strata management, buyers’ agency, agency services and auctioneering. Established in 1910, REINSW works to improve the standards, professionalism and expertise of its members to continually evolve and innovate the industry. It lobbies the government and industry on behalf of members, develops new products and services to benefit agencies and professionals, and offers training and ongoing professional development. For more information, visit reinsw.com.au.