NSW will collect more than $3 billion a year from insurance levies and duties across its forward estimates, budget papers released last week show.

Emergency services levy collections for 2026-27 are estimated at $1.512 billion, rising to $1.665 billion the following year, then $1.629 billion and $1.456 billion.

Revenues from the combined ESL insurer and council contributions are forecast to increase by $559.4 million over the four years to 2029-30 compared with figures in the half-yearly review.

The papers also show stamp duties on insurance will raise $1.86 billion next fiscal year, with the sum to grow an average of 6% a year to reach to reach $2.207 billion in 2029-30.

The insurance duties total has been revised down by $173 million over the four-year period since the half-yearly review, mainly due to recent premium moderation.

The Insurance Council of Australia says the ESL adds about 18% to the cost of a typical home premium and about 34% for commercial property, on top of stamp duty, and the government must press ahead with plans to overhaul emergency services funding.

ICA CEO Andrew Hall says the budget puts a number on the cost of leaving levy reform unfinished.

“A tax this size pushes people to cut back their cover or drop it altogether, which leaves more families and businesses exposed when the next flood or fire hits,” he said. “A fairer system is within reach, and [the] budget is the clearest sign yet that the time for reform is now.”

---

From the latest Insurance News magazine: Could NSW's latest bid to reform the emergency services levy go down in flames?

---