The NSW Government has announced it will put options to fix the state’s controversial Emergency Services Levy (ESL) funding model to a parliamentary inquiry.
Treasurer, Daniel Mookhey said the Government was committed to removing the ESL and replacing it with a simple and transparent levy spread across all properties.
All mainland states, apart from NSW, have implemented property-based levies to fund their emergency services.
To inform the inquiry process, the Government will release an options paper which includes five levy model options. This follows a collection of property level insurance policy data and land classifications performed by local councils under legislative amendments.
“This is an important step in moving funding for emergency services to an equitable and sustainable footing that cuts the cost of insurance,” said Mr Mookhey.
“The parliamentary inquiry will provide an open and transparent forum to test the proposed framework and ensure stakeholder perspectives are meaningfully considered.
“We want to work with the Opposition and the crossbench to plot the last leg of this journey. This system funds services that protect all of us – and it is time for all politicians to work together to reform it.”
LGNSW President and Sydney’s Inner West Council Mayor, Darcy Byrne said the collection of any new State Government charge must sit with the responsible state agency, Revenue NSW, and not councils.
“We look forward to our opportunity to address the inquiry, but it’s critical that the ESL be removed from councils to ensure fairness, transparency, and efficiency,” said President Byrne.
“It would be far more efficiently collected by a single NSW Government agency (such as Revenue NSW), as is the case in other states.”
“Councils are currently forced to remit this State levy instead of the responsible state agency, Revenue NSW, undertaking the collection.
“LGNSW would strongly oppose any move aimed at forcing councils to wear increased administrative costs and take the political heat for what is obviously a state government responsibility,” he said.
While most of the ESL is funded from a levy on insurance, 11.7% of the ESL is funded by a levy on councils. The ESL is one of the largest cost shifts onto councils, amounting to $236 million in 2025-26.
All mainland states, apart from NSW, have implemented property-based levies to fund their emergency services.
