Discover how millions of Aussies are cutting their living costs with this $290 insurance price drop!
- Replies 42
The cost of living can be a pressing concern for many, especially those with limited budgets and fixed incomes.
The good news is it seems relief is on the horizon for millions of Aussie households, thanks to the announcement of a significant cut in home insurance premiums.
If you live in New South Wales (NSW), you might have heard that the state government has decided to eliminate the Emergency Services Levy (ESL) from home insurance premiums.
This levy, used to fund emergency services in response to various disasters, including fires, storms, floods, and transport accidents, had previously been added to all home insurance policies. This change means you could soon save hundreds of insurance costs each year!
Over 17 per cent of households across NSW were without home and contents insurance. In high-risk parts of Australia—areas prone to flooding, for example—the insurance premiums soared by up to 50 per cent.
Even the average increase was notable, at 28 per cent in the year leading up to March.
The reduction of this levy could make home insurance up to 15 per cent cheaper for NSW residents, according to the Insurance Council of Australia.
With the average home and contents insurance policy being $160.75 per month or $1,929 per year, households could save up to $289 per year.
NSW Premier Chris Minns stated that while this reform wasn't an easy one to orchestrate, it was 'the right thing to do'.
‘For too long, this has been in the too-hard basket for NSW. But, as we face the threat of more natural disasters, we have a significant opportunity to make the system fairer [and] more sustainable for the future,’ he stated.
The Insurance Council of Australia was happy about the change, calling them 'great news' for those looking to insure their homes in the state.
CEO Andrew Hall stated, 'Reforming the ESL will be a major win for insurance affordability in New South Wales, an issue that is being discussed around kitchen tables and in small businesses around the state.’
The levies collected were forecasted to reach $1.3 billion this year, according to state budget papers. The NSW government needs to reassess how to distribute the cost across the state and intends to consult with stakeholders and industry experts on the reform.
It's important to note that NSW is the only state that funds its emergency services with a levy. All other mainland states have already removed similar levies—and Tasmania is in the process of reforming its own.
You can watch NSW Premier Chris Minns’ announcement here:
What are your thoughts on this reform, members? For NSW residents, do you believe it can bring some relief amid the cost-of-living crisis? Share your opinions in the comments below!
The good news is it seems relief is on the horizon for millions of Aussie households, thanks to the announcement of a significant cut in home insurance premiums.
If you live in New South Wales (NSW), you might have heard that the state government has decided to eliminate the Emergency Services Levy (ESL) from home insurance premiums.
This levy, used to fund emergency services in response to various disasters, including fires, storms, floods, and transport accidents, had previously been added to all home insurance policies. This change means you could soon save hundreds of insurance costs each year!
The New South Wales government announced that they’re removing the Emergency Services Levy (ESL) from home insurance premiums. Credit: Shutterstock
Over 17 per cent of households across NSW were without home and contents insurance. In high-risk parts of Australia—areas prone to flooding, for example—the insurance premiums soared by up to 50 per cent.
Even the average increase was notable, at 28 per cent in the year leading up to March.
The reduction of this levy could make home insurance up to 15 per cent cheaper for NSW residents, according to the Insurance Council of Australia.
With the average home and contents insurance policy being $160.75 per month or $1,929 per year, households could save up to $289 per year.
NSW Premier Chris Minns stated that while this reform wasn't an easy one to orchestrate, it was 'the right thing to do'.
‘For too long, this has been in the too-hard basket for NSW. But, as we face the threat of more natural disasters, we have a significant opportunity to make the system fairer [and] more sustainable for the future,’ he stated.
The Insurance Council of Australia was happy about the change, calling them 'great news' for those looking to insure their homes in the state.
CEO Andrew Hall stated, 'Reforming the ESL will be a major win for insurance affordability in New South Wales, an issue that is being discussed around kitchen tables and in small businesses around the state.’
The levies collected were forecasted to reach $1.3 billion this year, according to state budget papers. The NSW government needs to reassess how to distribute the cost across the state and intends to consult with stakeholders and industry experts on the reform.
It's important to note that NSW is the only state that funds its emergency services with a levy. All other mainland states have already removed similar levies—and Tasmania is in the process of reforming its own.
You can watch NSW Premier Chris Minns’ announcement here:
What are your thoughts on this reform, members? For NSW residents, do you believe it can bring some relief amid the cost-of-living crisis? Share your opinions in the comments below!
.png){kind=icon}
