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New South Wales Emergency Services Levy
With the end of the Emergency Services Levy (ESL) financial year approaching (01 July – 30 June), we would like to take the opportunity to remind all managing agents that insurers (including their brokers, coverholders or service companies)(1) writing relevant classes of business in New South Wales (NSW) are required to charge an ESL alongside the risk premium to cover their contribution to the emergency services annual budget. It is the responsibility of these insurers to charge an appropriate rate to reflect their market share and so fund their portion of the budget.
Subscribers to the Australian Fire Brigade Charges Scheme (see the Second Schedule in Appendix A of the Fourth Reference Manual) are responsible for collecting and remitting the relevant ESL on policies issued in NSW. Where directed, Subscribers should follow the ESL rate provided to them by Lloyd’s syndicates who are Participating Underwriters (see the First Schedule in Appendix A of the Fourth Reference Manual).
As previously advised (in LMA17-030-PD – 04 August 2017), many local entities utilise the services of Professional Financial Solutions (PFS) to assist them in determining the ESL rate they should charge in order to cover their liabilities to the emergency services budget. A similar service has been offered to syndicates. Should you wish to discuss this offering, Doug Drysdale (PFS) can be contacted at dougdrysdale@pfsnet.com.au or +61 2 9225 6117.
The LMA is considering utilising PFS to provide rate-determination services for all Scheme members.
Please also note that from 01 July 2019 there is a requirement to provide year on year premiums on the renewal notices for policies that attract ESL in NSW. Further information on the requirement can be found on the monitors' website.
If you have any further questions, please contact Patrick Davison - patrick.davison@lmalloyds.com 020 7327 4595.
Patrick Davison
Deputy Director of Underwriting
(1) Section 3 of the Emergency Services Levy Act 2017 (NSW) defines an insurer as:
“a person, partnership or association who (whether as an underwriter or otherwise):
a. issues or underwrites liability under policies of insurance against loss or damage to property situated in the State or
b. receives premiums in respect of policies or insurance against loss or damage to property situated in the State on behalf or for transmission to a person, partnership, association or underwriter outside the State.”
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