Announcement regarding Australian Fire Brigade Charges Scheme

From 1 July 2013 the Victorian Government intends to end the Victorian Fire Services Statutory Contributions system. In addition, the Insurance Council of Australia (ICA) recently decided to stop preparing and publishing any recommendations in respect of Fire Services Levy Advisory Rates. In light of these developments, the Committee of Management of the Australian Fire Brigade Charges Scheme considers that it is undesirable for the Committee to recommend advisory fire services levies in substitution for the ICA's Advisory Rates, in any State. Participating underwriters should be responsible for determining the amount of their own individual levies, if any, to be collected and should advise brokers and agents accordingly. 

The Committee of Management notes that external service providers are available who can provide advice to individual participating underwriters who may need assistance in determining their own contributions to fire services levies.

In these circumstances the Committee of Management has decided to terminate the Scheme as currently operated. Consequently the Committee of Management hereby gives the six months’ notice of termination required by section 14 of the Scheme Agreement. For the avoidance of doubt, the Scheme as currently operated will enter orderly run-off from 31 December 2012. Over the course of the coming months, the Committee of Management invites interested parties to join with it in discussions to determine the most appropriate mechanism for the future.


Keith Jones
Secretary to the Committee of Management
Australian Fire Brigade Charges Scheme

LMA Logo

LMA Bulletin

Date:  20 June 2012

From: Senior Executive, Underwriting

Ref: LMA12-013-KJ