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Commonsense On Fire Services Levy The Nationals Member for Morwell Russell Northe said the tired and out of touch Brumby Government has reluctantly decided to replace Victoria’s inequitable insurance-based Fire Services Levy (FSL) By Russell Northe - 10th September 2010 - Back to News with a fairer property-based system after many years of intense pressure for reform from the Victorian Liberal Nationals Coalition.
"Labor has known for years how unfair and inequitable the FSL has been, and everyone but John Brumby has acknowledged that the FSL was a tax that placed a heavy burden on regional Victorians, yet Labor has done nothing to address this anomaly," Mr Northe said.
"For many years, along with my Nationals and Liberal colleagues, I have lobbied for a more equitable FSL and now it seems that because the Royal Commission has recommended a fairer system the Brumby Government has finally conceded despite its earlier protests.
"In fact, the Premier John Brumby stated in the Parliament in August 2009, that The Nationals policy for a property based levy, was a poll tax, and he thought it was a disgraceful policy.
"However, the Premier’s existing model actually encouraged people to under insure, or not insure their property at all, particularly when you realise that country businesses that pay $1000 for an insurance premium, have to pay an additional $840 for the fire services levy. Include GST and stamp duty on top of this and you more than double the cost of the initial insurance premium"
Mr Northe said the costs can add up similar to the following example:
Premium $1,000.00
Fire Services Levy (84%) $ 840.00
GST (10%) $ 184.00
Stamp duty (10%) $ 202.40
Total Cost $2,226.40
Mr Northe said many organisations including the Victorian Farmers Federation, independent retirees and the Insurance Council of Australia have called for change to the FSL.
"John Brumby is trying to rewrite history, because Labor has consistently opposed a property-based fire services funding system and has stifled any moves towards such a system over its 11 years in office," Mr Northe said.
"Even in its official submission to the Bushfires Royal Commission, the Brumby Government said the Commission should not make any recommendations on the matter."
Mr Northe said Labor has deliberately ignored numerous reports and advice from as far back as 2001 that have said the FSL was inequitable and in desperate need of reform. In recent times the Bushfire Royal Commission and the 2010 Federal Government Henry Tax Review also recommended the abolition of the existing FSL in Victoria.
russell.northe@parliament.vic.gov.au www.russellnorthe.com.au 66 George St, Morwell VIC 3840 ph 03 5133 9088 fax 03 5133 9388
"Labor has been shamed into action when for years it did not care about the expense of the FSL on Victorians, particularly those in country Victoria who have had to endure ever-increasing FSL rates on their insurance premiums," Mr Northe said.
Media: Russell Northe 0408 22 55 23 / Julia Auciello 5133 9088
Source: www.gippsland.com Published by: news@gippsland.com
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