A Heavier Levy: Victoria bears the brunt of latest FSL hike
Insurance & Risk Professional, August 2008
As another financial year rolls over and people get their tax thinking caps on, yet another insurance tax hike has greeted Victoria.
From July 1, the fire services levy (FSL) increased from 55% to 58% for commercial lines in country Victoria and from 22% to 24% for householders – the third rise since December.
City dwellers are not immune from the increase, with the FSL rising one percentage point in metropolitan Victoria to 48% for business premiums and to 20% for residential premiums.
The rise in levies means a country Victorian business now pays $191.18 based on a $100 premium with the addition of GST and stamp duty.
NIBA Chief Executive Noel Pettersen told Insurance & Risk Professional the decision to increase FSL on insurance premiums is making insurance a luxury for many households already struggling under the weight of fuel prices and high interest rates.
“It just doesn’t make sense,” he said.
“At a time when Victorian householders are already facing a higher cost of living, again we’re seeing an insurance rise.”
“Consumers are starting to feel the pinch and no doubt we’ll see the effects on the purchase of insurance cover.”