News

NSW inquiry to overhaul Emergency Services Levy

By Ryan Bellingham

Feb 18, 2026

Proposed changes to the Emergency Services Levy have prompted councils to call on the NSW Government to collect it directly.

Councils in NSW are urging the state government to collect its Emergency Services Levy directly, as reforms imposing the tax on all properties are considered.

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Aimed at reducing household insurance costs and fixing what the government called an “unfair funding model”, a NSW parliamentary inquiry will look to replace the current levy with a new system.

“This is an important step in moving funding for emergency services to an equitable and sustainable footing that cuts the cost of insurance,” NSW Treasurer Daniel Mookhey said.

As it stands, the ESL is paid by those who take out property insurance, with its cost on residential policies rising 48 per cent between the 2017 to 2023 financial years.

But with councils currently forced to remit the levy, peak body Local Government NSW has called for any new charge to be collected by state agency Revenue NSW.

President Darcy Byrne said LGNSW supported a more equitable levy, but making 128 councils responsible for the charge would not make sense.

“LGNSW would strongly oppose any move aimed at forcing councils to wear increased administrative costs and take the political heat for what is obviously a state government responsibility,” Cr Byrne said.

“After years of cost shifting to local government, many councils are in a challenging financial position.

“In particular, for many smaller, regional and rural councils facing an existential threat to their financial viability, requiring them to administer a state government levy would be both unreasonable and unfair.”

Murray River Council Mayor John Harvie joined the call, and said the council would “vigorously oppose” any government attempt at making it collect the levy.

While most of the ESL is funded via insurance, 11.7 per cent comes from a levy on councils, amounting to $236 million statewide this financial year.

All mainland states, apart from NSW, have implemented property-based levies to fund their emergency services.

Reforms to the ESL have been under way since 2023, involving extensive public consultation and collaboration with the insurance industry.

To inform the parliamentary inquiry, the NSW Government will release an options paper with five levy model options.

The proposed changes follow controversy around the Emergency Services and Volunteers Fund in Victoria, with many councils calling for the State Revenue Office to collect the levy.