Fire Service Levy changes – FSL Update

23 June 2017

The changes to the Fire Service Levy will take effect from 1 July 2017. 

Residential
The new rate is 10.6c per $100 insured (capped $20,000 for contents) meaning an increase to the Contents portion of our Star Campercare motorhome insurance policies. Our policies have a base loose contents portion which is captured by the FSL levy. The new levy that will be charged from 1st July for this portion is $3.18 + GST

Vehicles
Motor Vehicles and Boat Trailers (less than 3.5 tonne)
The new flat rate is $8.45 which is an increase of $2.37.

Motor Vehicles and Boat Trailers (over 3.5 tonne)
The new rate is 10.6c which is charged as a percentage of the sum insured.
e.g. $10,000 x 0.106%

FSL: what’s expected?
FENZ have indicated that their expectation is for insurers and intermediaries to calculate FSL rates correctly. As such, at Star Insurance Specialists we’re working hard to ensure our systems are correct and encourage our broker partners to do the same.

Brokers :
FENZ have also indicated their intolerance for attempts at levy avoidance, such as changing renewal dates to attract a better levy rate or extending policy durations to defer the application of the new levy rate, so please keep this in mind when creating or endorsing policies.

If we receive a bordereau where an item(s) has the incorrect Fire Service Levy applied, we’ll undertake to make contact with the initiator to ensure that the correct levy is applied and collected, and provide a reminder that any systems in use need to be updated to include the correct FSL rates.