While in theory a move towards a property based levy calculated by land value may be more equitable than the current insurance model, as mentioned, it does not take into account the capacity to pay. Introducing a property levy as either a fixed amount per property or as a percentage of property value disadvantages people who are unable to afford insurance in the first place.
If a property tax is introduced this will not result in insurance premiums being reduced and the end result will be prohibitive for people on low incomes in two ways – they will still be unable to afford to insure their properties and they will be unable to afford an additional tax.
People on low, fixed incomes, such as pensions and Newstart, are often unable to afford basic goods and services and without a significant overhaul to payment rates are going to be unable to buffer themselves against an additional tax.
If a property based levy is introduced, CPSA calls for pensioners and other concession card holders to be exempt from the new tax. Fire and emergency services are essential for the safety of all NSW citizens and like ambulance services that are free for pensioners, pension card holders should be exempt from paying any new emergency levy.
 The non-insured, who, why and trends, Dr Richard Tooth and Dr George Barker, Centre of Law and Economics, for Insurance Council of Australia, 2007.