Strata Community Association (NSW) has joined a coalition of business, consumer, community and industry organisations calling on every party in the New South Wales Parliament to commit to scrapping the Emergency Services Levy (ESL) before the March 2027 state election.
SCA (NSW) is supporting the Insurance Council of Australia’s “Why are we waiting?” campaign, which calls for the levy to be replaced with a fairer funding model for emergency services.
The campaign highlights a key issue for strata communities: owners corporations are required by law to maintain building insurance, meaning strata schemes have disproportionately funded emergency services through the ESL for many years.
Why this matters for strata communities
Unlike many property owners, strata communities cannot simply choose whether or not to insure their buildings. Owners corporations must maintain compulsory building insurance, which means the ESL is applied across apartment buildings, townhouse complexes and other strata schemes throughout New South Wales.
As insurance premiums have increased in recent years, the levy has risen with them, placing additional financial pressure on strata communities already managing higher maintenance, compliance and operating costs.
SCA (NSW) President Robert Anderson said the current system places an unfair burden on strata owners.
“SCA (NSW) has long advocated for a fairer funding model that removes taxes on insurance and improves affordability for strata communities.”
“Strata owners in NSW have been paying up to three times more in Emergency Services Levy charges than their Victorian counterparts, despite facing similar insurance needs. Our sector has disproportionately funded these agencies because Owners Corporations are required to maintain compulsory building insurance.”
“We believe that the levy should be collected through Council rate notices, with classification by Revenue NSW, as this is the fairest practice that aligns with other states and territories across Australia.”
A fairer way forward
SCA (NSW) supports reform that would replace the insurance-based levy with a broader property-based funding model, bringing New South Wales into line with every other state and territory in Australia.
Independent economic analysis commissioned by the Insurance Council of Australia indicates that replacing the ESL with a broad-based property charge would leave 2.1 million NSW households better off, with some of the largest savings flowing to regional households, pensioners, strata residents and small businesses.
Read the full joint media release from the Insurance Council of Australia – Joint Media Release: Why are we waiting? Business, consumer and community groups call on NSW MPs to scrap the insurance tax – Insurance Council of Australia
