Emergency services funding reform – Options paper

Reforming the Emergency Services Levy (ESL) is unfinished business that needs to be resolved to ensure fairer outcomes for consumers and improve insurance affordability. It has been well-documented that the ESL is a regressive tax that contributes to insurance affordability pressures, particularly for climate-exposed households. Households and businesses that take out property insurance fund emergency services, while those that do not, including large businesses who self-insure, benefit from the protection of emergency services without contributing to their funding. Levy costs are not aligned with ability to pay, penalising higher-risk or lower-capacity households while allowing large, self-insured entities to avoid costs.