18 August 2017
In December 2015, the NSW Government announced it would abolish ESL from insurance premiums and replace it with a new Levy payable alongside council rates.
This proposed reform was set to come into effect on the 1st of July 2017, and intended to make it “fairer for all” as the charge would be shifted from policyholders to landowners.
In preparation of these changes, insurance companies began to progressively remove ESL, some abolishing it from as early as May (2017).
On 30 May 2017, the NSW Government announced the proposed legislation would be reversed indefinitely following incorrect financial modelling received from Treasury.
As a result, insurers had to re-introduce the levy with little notice, which led to Inconsistent levy’s being charged and varied transition periods between insurers.
It is expected that the re-introduction of the levy will be complete by all major strata insurers as of the 1st of October 2017.