The introduction of a new levy to fund fire and emergency services will unfairly burden property owners, according to the Real Estate Institute of New South Wales.
The proposed levy has been recommended in the final report from a Parliamentary inquiry into the land valuation system (2 May 2013).
REINSW President Christian Payne said the proposed levy is bad for the property industry across the board.
“This is a further cost on property,” Mr Payne said.
“The levy will hurt renters, as well as property owners, and the primary beneficiary of the levy will be the insurance companies who won’t have to make payouts in the future.
“Insurance companies have a vested interest in ensuring that fire and other emergency services are well resourced and running efficiently. Prompt responses to fires and other emergency situations will lead to insured properties suffering less damage and consequently reduce the liability of insurers under the insurance policies.
“While REINSW acknowledges the importance of ensuring adequate funding for the emergency services in NSW, a new tax on property owners will have a negative impact on the already strained property industry.