12/6/02
Western Australians who responsibly insure their homes and property are set for a significant insurance discount under new funding arrangements announced today by the State Government.
Emergency Services Minister Michelle Roberts detailed a fairer and more equitable system of funding the Fire and Emergency Services Authority (FESA), that would also provide greater support for the State's emergency services volunteers.
Mrs Roberts said that under the current arrangements, essential emergency services were available to everyone but only some people paid, while others received free cover.
"For too long there has been an unfair and inequitable situation with as many as one in three homes either not insured or under-insured, but still receiving emergency protection," she said.
"This means that people who responsibly insure their property are currently heavily subsidising those who avoid contributing, either by not paying or by insuring offshore.
"For example, the owners of vacant land do not contribute through insurance-based levies, even though their land generates more than 30 per cent of all fire call-outs."
Mrs Roberts said under the new State-wide system, which would be introduced on July 1 next year, an emergency services levy would be based on the Gross Rental Value (GRV) of the property and would be collected by local governments, along with council rates.
"For those people who responsibly insure their homes and property, the new streamlined funding system will bring discounts of up to 23 per cent off their home and contents insurance premiums," she said.
"This translates to an average reduction of $80 for most fully insured residential property owners and in addition there will also be a $12 cut in their local government rates.
"In the case of commercial premises, there will be a reduction of up to 33 per cent off their insurance premiums."
Mrs Roberts said the new levy would replace the complicated funding arrangements that supported FESA's career and volunteer fire and rescue services, Bush Fire Brigades and the State Emergency Service. The old system was based on insurance and council levies and State Government grants.
"Under the old system, not all councils could afford to fit-out and train their emergency services volunteers, but the new levy will ensure all local governments are the big winners with a better and more consistent approach across the State," the Minister said.
"For example, on information provided by local governments, the average contribution per property towards the cost of operating local volunteer emergency services in Cranbrook was $201, in Kondinin it was $102, and Wandering $89.
"Under the new system, a fixed charge of $30 per property will apply annually in all three locations."
Mrs Roberts said the real beneficiaries of the upgraded funding system would be FESA's 24,000 fire and emergency services volunteers across the State.
"These dedicated volunteers will be ensured better resources, effectively removing the need for many brigades to undertake a lot of their own time in fundraising for essential items like protective clothing and equipment," she said.
The Minister said the State Government would pay councils for collecting the levy and FESA would meet any additional costs associated with implementation.
"There is no exemption from the levy, although a rebate system will apply to pensioners and seniors, and people will be able to pay through instalments," she said.
Minister's office: 9213 6600
