New property value-based levy approved for metro fire services

25/11/98

State Cabinet has approved a new property value-based levy for fire services in the gazetted fire districts of the Perth metropolitan area and five other centres in Western Australia.

Emergency Services Minister Kevin Prince announced that the new levy would be introduced from July 1 next year when fire service loadings on insurance premiums for properties in those areas would be discontinued.

"The new fire levy is a fairer and more equitable way of funding WA's Fire and Rescue Service, which is currently available to everyone in the gazetted fire districts, whether they contribute to the fire service through their insurance premiums or not," Mr Prince said.

"The current fire levy collection system is unfair, as only those property owners who adequately insure contribute an appropriate amount to the Fire and Rescue Service.

"A great proportion of property owners are under-insured or do not insure at all - they do not pay a fire levy but can still utilise the Fire and Rescue Service.

"For example, owners of vacant land make no contribution but were responsible for more than 35 per cent of fire service call outs in 1997-98.

"For the first time, all property owners in those gazetted fire districts will soon contribute more equitably to the cost of providing a permanent fire service."

The new fire levy will not affect every WA household - only those served by a permanent fire service.

Those areas affected by the change include the gazetted fire districts of the Perth metropolitan area, parts of the cities of Armadale and Rockingham, Geraldton, Bunbury, Albany, Kalgoorlie and Northam.

It will not affect centres served by Volunteer Fire and Rescue Brigades or areas which are protected by the Bush Fire Service.

The levy will be calculated on the gross rental value (GRV) of a property.

It will be collected by 34 local government authorities throughout the State as a single additional item on annual rates notices, which will minimise collection costs to property owners and help keep the levy at the lowest possible level.

Mr Prince said the average residential property would be levied at about $70 to $80 a year, although this depended entirely on the GRV of individual properties.

"This compares with the current average cost of about $95, which includes a contribution made through council rates and loadings on insurance premiums," the Minister said."The cost of insurance is also expected to fall considerably when the new levy is in place and the Insurance Council of Australia (ICA) has assured Government that all pre-paid levies charged to property owners insuring before the implementation date will be refunded."

Mr Prince said local government authorities could expect their contribution to the operating costs of the fire services to fall by $7 million a year under the new proposal.

"The current obligation of those councils to contribute 12.5 per cent to the total cost of fire services in the gazetted fire districts in their areas will be reduced under the new arrangements," he said.

"Councils will also share a $1 million-a-year fee for collecting the levy which, coupled with their reduction in contributions, should significantly benefit ratepayers in those areas."

A community information program on the new levy, to be conducted in conjunction with the ICA, local government and the WA Municipal Association, will begin in early 1999.

Media contact: John Clune 9213 6500