The decision by the NSW Government to defer the introduction of the Fire and Emergency Services Levy was the only option, according to the Real Estate Institute of New South Wales.

REINSW President John Cunningham said the new levy was unfair and bad for the NSW Economy. 

“The fire levy was more like as new form of land tax,” Cunningham said. 

“It was based on the unimproved value of property which has nothing to do with the cost of running our Fire Services as opposed to the insurance levy being based on replacement value of the structure. 

“The levy would have left a large number of households worse off and also affected commercial and industrial businesses. This would have had significant consequences for all residents of NSW including our most vulnerable in the community. 

“We lobbied hard on this issue and it is great to see that the NSW Government has listened to us.

“We look forward to working with the Premier to ensure that the correct policy is put in place in the future.

“Other essential services in NSW including police and health services are funded through consolidated revenue and REINSW will encourage the NSW government to explore this source of funding for Fire and Emergency Services,” Cunningham said. 

The NSW Government said in a statement on Tuesday (30 May 2017) until they complete their review the Fire and Emergency Services Levy will continue to be collected via insurance policies.

Read more about the REINSW:

NSW moves a "great first step" to improve affordability: REINSW

NSW to consider stripping councils of DA powers

New home completions beat 1971 record, but will it be enough?