NIBA provides submission to Fire Services Act Review

NIBA has provided a submission to the Tasmanian Fire Services Act review.

Written on 8 December, 2021
Allyssa Hextell

NIBA has provided a submission to the Tasmanian Governments’ review of the Blake Fire Services Act Review.

The Review, which was commissioned by the states’ liberal government as part of its pledge to review the existing legislation within the first 100 days of being re-elected, sought community feedback on the 45 recommendations made by the Blake Review.

Treasury also sought feedback on a number of alternative funding models for the state’s fire and emergency services, in light of recommendations that the existing model should be scrapped.

NIBA’s submission, supported the findings of the Blake Review, in particular, that the current funding arrangements are unfair, distortionary, and unnecessarily complex. The submission highlighted the significant contribution made by policyholders, despite only accounting for 16% of fire services activity in 2020-21.

The submission argued that the current Fire Services Levy, applied to commercial property insurance, failed to meet the basic principles of a good taxation model, and directly contributed to underinsurance and non-insurance.

NIBA’s submission supported the abolition of the current model, which draws on income from three separate taxes, and recommended that they be replaced with a broad-based property levy. Given the significant demand that road accidents place on emergency services, NIBA argues that in the interests of equity and fairness, the Motor Vehicle Levy should continue.

NIBA’s submission can be accessed here