Coalition’s big new tax a gift to insurance industry, paid for by ordinary residents

Residents across NSW will be slugged with a big new emergency services tax from 1 July this year – with insurance companies and businesses the big winners.

While homeowners in Sydney will pay a new tax that in some areas will be well over $400 a year, the insurance industry was delivered $700 million tax cut.

The new law makes homeowners pay 58% of the tax and businesses only 47%, though businesses account for 55% of emergency service callouts and residential properties just 34%. This means that the residential sector will pay almost 60% more than their fair share, to subsidise NSW businesses.

Greens MP and Industrial Relations David Shoebridge said:

“Emergency services such as the Fire Brigade, SES and Rural Fire Service are essential services, which save and protect life and property and save the insurance industry hundreds of millions of dollars.

“The Government has shown their true colours with this bill, which will see residents across NSW slugged with a big new tax as of the middle of this year.

“When residential owners use 34% of the service and are being hit for 58% of the levy, you’ve got to ask who benefits.

“This is little more than a $700 million gift for insurance companies paid for by a new tax on all homeowners,” Mr Shoebridge said.

Greens MP for Newtown Jenny Leong said:

“Private consortiums like Westconnex are left off the hook in these changes and won’t have to pay any of the levy.

“Residents right next to Westconnex will be paying hundreds of dollars for this tax, while the big private road next door doesn’t pay a cent. That stinks,” Ms Leong said.

 

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