Example of how the old Victorian Fire Services Levy was applied by AAMI

I’ve never really thought much about the Fire Services Levy simply because we have no choice but to pay it. If you take out home insurance it is part of your premium. In my earlier post the Fire Services Levy came to my attention because I received a partial refund as AAMI had calculated the premium incorrectly, although the refund raises the bigger issue of, how long have I been over paying. However as part of checking the Fire Services Levy AAMI to their credit provides the following page.

Removal of the Victorian Fire Services Levy (FSL) From Your Insurance Premiums... Read More

In AAMI’s example you can see the Fire Services Levy set at 30% and then GST is added at 10% (a tax on a tax) and then Stamp Duty is applied (a tax on a tax on a tax). In the example the amount of taxes collected is a staggering 36.5% of the home insurance premium.

For those interested I’ve written a Fire Services Levy calculator which is available at http://www.justlocal.com.au/clients/fire-services-levy-victoria/.

- Kelvin Eldridge
www.OnlineConnections.com.au