Fire Services Levy consigned 'to the history books'

If you live in Victoria and have business property insurance, you may be familiar with the Fire Services Levy (FSL).

Until July 1, this was paid by people with business insurance and other plans that included cover for fire.

The money collected was used to support fire services in Victoria, such as the Metropolitan Fire Brigade and the Country Fire Authority.

However, the Victorian government has opted to do away with the FSL and replace it with a different system.

A Fire Services Levy Monitor, Professor Allan Fels, has been appointed to make sure the transition is a smooth as possible.

This decision was warmly welcomed by the Insurance Council of Australia (ICA).

"We congratulate the Victorian government for having the vision and determination to consign the inequitable Fire Services Levy to the history books," said Rob Whelan, chief executive officer of the ICA, in a July 1 statement.

Mr Whelan said the FSL was a "disincentive to purchasing insurance or to properly insure properties and their contents," adding that the ICA has been lobbying for the system to be overhauled for many, many years.

The FSL has been replaced by the Fire Services Property Levy, which will be collected by local councils in Victoria along with rates.

This means that supporting fire services in the state won't only be the burden of forward-thinking property owners.

"History shows reducing the taxes and levies on insurance can help reduce the level of underinsurance and non-insurance," said Mr Whelan.

"More insured properties means fewer demands on government and community organisations following future natural disasters."

If you are interested in taking out a business, farm or personal insurance policy, you may want to get in touch with Elders Insurance.

Our agents located in Victoria can talk you through your insurance options and help you put together a policy that suits your needs and financial situation.