This Act requires insurers to pay an emergency services contribution on specified property-related insurance premiums. Insurers pay four advance instalments based on a formula and a final assessed amount after audited returns; the Chief Commissioner administers assessments, collections and refunds.
The Treasurer sets an annual contribution target, the Act includes transitional rules to a new levy, and later amendments add time‑limited powers to collect insurer and local council data, keep a register and require land classification to support funding reform.
This Act re-establishes an emergency services insurance contribution scheme and prescribes how contributions are assessed, collected and reconciled from insurers that write specified classes of property insurance for risks located in New South Wales (the State). The scheme is administered through assessments and returns by the Chief Commissioner of State Revenue (the Chief Commissioner), with the Treasurer determining an annual contribution target that drives both provisional (initial) and final assessments.
Mechanically the Act does the following:
Creates a liability on insurers who receive or are entitled to receive premiums for “relevant insurance” (s 6; s 7).
Defines “relevant insurance” by reference to classes listed in Schedule 1 and prescribes a relevant proportion of premiums for each class used to calculate contribution shares (s 9; s 11; Schedule 1).
Requires the Treasurer to determine an annual contribution target Ct driven by a formula that aggregates the funding targets for fire brigades, rural fire services and SES (s 22; s 23) and allows adjustments for recovered over‑collections (s 24).
Requires the Chief Commissioner to issue initial assessment notices (provisional amounts) and final assessment notices (final amounts) and to collect instalment payments in the interim (Part 3, particularly ss 12-20; s 15).
Bases the initial assessment (subject to exceptions for new entrants where an estimate can be used) on an insurer’s share of total premiums two years earlier (s 13); the final assessment allocates the contribution target across insurers by their share of current-year premiums (s 17).
Imposes reporting and audit requirements on insurers (s 32), allows estimation where returns are not lodged (s 27), and empowers the Chief Commissioner and Treasurer to query and publicise alleged overcharging (price discrepancies) subject to disclosure limits (ss 39-41).
Current sections
Direct links to the current provisions in Emergency Services Levy Act 2017.
contribution means the emergency services contribution payable under this Act.
contribution target means the contribution target determined by the Treasurer under Part 4.
final assessment notice—see section 18.
final contribution amount means a final contribution amount determined by the Chief Commissioner in accordance with section 17.
financial year means a period of 12 months commencing on 1 July in each year.
foreign insurer means an insurer who is not authorised under a law of the Commonwealth or of a State or Territory to carry on an insurance business.
former emergency services funding scheme means the scheme for funding certain fire and emergency services from contributions required to be paid by insurers under the following provisions, as in force before the commencement of the Fire and Emergency Services Levy Act 2017—
function includes a power, authority or duty, and exercise a function includes perform a duty.
initial assessment notice—see section 12.
initial contribution amount means an initial contribution amount determined by the Chief Commissioner in accordance with section 13.
insurer means a person, partnership or association who (whether as an underwriter or otherwise)—
(a) issues or undertakes liability under policies of insurance against loss of or damage to property situated in the State, or
(b) receives premiums in respect of policies of insurance against loss of or damage to property situated in the State on behalf of or for transmission to a person, partnership, association or underwriter outside the State.
total amount of attributed charges—see section 38.
Note—
The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.
(2) Notes included in this Act do not form part of this Act.
(3) In this Act, a reference to a financial year, when immediately preceded by a reference to particular years (in the format of [year]/[year]), is a reference to the financial year that commences and ends in those years (respectively).
Note—
For example, a reference to the 2017/2018 financial year is a reference to the financial year commencing in 2017 and ending in 2018.
s 3: Am 2018 No 59, Sch 5.1.
4
Premiums
4 Premiums
4 Premiums
(1) In this Act, a reference to a premium, or to the amount or total amount of premiums, includes any brokerage or commission paid or due to be paid or allowed to be paid on—
(a) the premiums, or
(b) bonuses or return premiums allowed in respect of a policy of insurance the subject of the premiums, or
(c) such part of the premiums received by or due to the insurer as is paid or due to be paid by way of reinsurance by the insurer to another insurer in the State.
(2) However, premiums do not include GST or duty payable under the Duties Act 1997 in respect of policies of insurance the subject of the premiums.
This Act is to be read together with the Taxation Administration Act 1996 which provides for the administration and enforcement of this Act and other taxation laws.
Part 2
Emergency services insurance contribution
Part 2 Emergency services insurance contribution
Part 2 Emergency services insurance contribution
6
Emergency services insurance contribution
6 Emergency services insurance contribution
6 Emergency services insurance contribution
An emergency services insurance contribution is payable in respect of premiums for relevant insurance.
Note—
This Act re-establishes an emergency services insurance contribution scheme pending the introduction of the levy imposed by the Fire and Emergency Services Levy Act 2017.
7
Insurers are liable to pay contribution
7 Insurers are liable to pay contribution
7 Insurers are liable to pay contribution
An insurer who receives or is entitled to receive premiums for relevant insurance is required to pay the contribution.
8
Contribution payable for each financial year
8 Contribution payable for each financial year
8 Contribution payable for each financial year
A contribution is payable in respect of each financial year in which the insurer receives or is entitled to receive premiums for relevant insurance.
9
Meaning of “relevant insurance”
9 Meaning of “relevant insurance”
9 Meaning of “relevant insurance”
For the purposes of this Act, relevant insurance means insurance against loss or damage to property in the State under a class of policy specified in Schedule 1.
10
Amount of contribution
10 Amount of contribution
10 Amount of contribution
(1) The contribution payable by an insurer in respect of a financial year is the final contribution amount for that insurer for that financial year.
(2) However, an insurer is required to pay an initial contribution amount by instalments, in advance of a determination of the final contribution amount, as provided for by Part 3.
11
Premiums that are subject to contribution
11 Premiums that are subject to contribution
11 Premiums that are subject to contribution
(1) Both an initial contribution amount and a final contribution amount are calculated by reference to the total amount of premiums received by or due to an insurer that are subject to contribution.
(2) A premium is subject to contribution if the premium is for a class of policy specified in Schedule 1.
(3) For the purposes of this Act, the total amount of premiums that are subject to contribution in a financial year is the total of the relevant proportion of the total amount of premiums received by or due to an insurer in the financial year for each class of policy specified in Schedule 1.
(4) The relevant proportion for a class of policy specified in Schedule 1 is the percentage specified in relation to that class of policy in Schedule 1.
(5) An assessment under this Act of the total amount of premiums of an insurer that are subject to contribution in a particular financial year is to be made by reference to Schedule 1 as in force at the commencement of that financial year.
Part 3
Calculation and payment of contribution
Part 3 Calculation and payment of contribution
Part 3 Calculation and payment of contribution
12
Initial assessment notice
12 Initial assessment notice
12 Initial assessment notice
(1) The Chief Commissioner must give to each insurer who is required to pay a contribution for a financial year an initial assessment notice for the financial year.
(2) An initial assessment notice is an assessment notice that specifies the initial contribution amount payable by the insurer for the financial year.
(3) An initial assessment notice for a financial year must be served on an insurer on or before the date of 30 April in the financial year before the financial year for which the initial contribution amount is payable, subject to Part 5.
13
Assessment of initial contribution amount
13 Assessment of initial contribution amount
13 Assessment of initial contribution amount
(1) The initial contribution amount payable by an insurer for a financial year is the amount determined by the Chief Commissioner in accordance with the following formula—
where—
It is the initial contribution amount payable by an insurer for the financial year (represented by “t”).
Ct is the contribution target for the financial year (represented by “t”).
P(t-2) is the total amount of premiums of the insurer subject to contribution in the financial year that commenced 2 years before the period “t” (represented by “t-2”).
T(t-2) is the total amount of premiums of all insurers subject to contribution in the financial year that commenced 2 years before the period “t” (represented by “t-2”).
(2) The Chief Commissioner may, instead of determining the initial contribution amount as provided for by subsection (1), estimate the final contribution amount that is reasonably likely to be payable by the insurer for the financial year. In that case, that estimate is the initial contribution amount payable by the insurer for the financial year.
(3) Subsection (2) applies only if the insurer was not required to pay a contribution in the financial year that commenced 2 years before the financial year for which the determination is made.
(4) An assessment that is made under subsection (2) does not affect the determination of the initial contribution amount for other insurers who are assessed in accordance with subsection (1).
Note—
An assessment under subsection (2) may result in the total of all initial contribution amounts exceeding the contribution target for the financial year, but when final assessments are made any over-collection amounts are refunded to insurers.
(5) The initial contribution amount is to be rounded down to the nearest whole dollar amount.
14
Insurer liable for initial contribution amount
14 Insurer liable for initial contribution amount
14 Insurer liable for initial contribution amount
An insurer who is assessed for an initial contribution amount must pay the initial contribution amount to the Chief Commissioner in accordance with this Act.
15
Initial contribution amount to be paid in instalments
15 Initial contribution amount to be paid in instalments
15 Initial contribution amount to be paid in instalments
(1) The initial contribution amount is payable in 4 equal instalments.
(2) An instalment is payable by the date of 1 September, 1 December, 1 March and 1 June in the financial year for which the initial contribution amount is payable.
(3) If an instalment is not paid in full within 21 days after the due date, the remainder of the initial contribution amount payable by the insurer for the financial year becomes due and payable.
16
Instalment notices
16 Instalment notices
16 Instalment notices
(1) The Chief Commissioner must give to each insurer who is required to pay an initial contribution amount a written notice, in relation to each instalment that is payable (an instalment notice), that specifies—
(a) the amount of the instalment payable under the instalment notice, and
(b) the date by which the instalment is payable.
(2) The instalment notice must state the following—
(a) the initial contribution amount payable by the insurer for the financial year,
(b) the amount of any instalments already paid by the insurer for the financial year,
(c) the amount that remains to be paid for the financial year after payment of the instalment.
(3) An instalment notice must be served on the insurer no less than 21 days before the date by which the instalment is payable.
(4) If the instalment notice is served on an insurer less than 21 days before the date by which the instalment is payable, the due date for payment of the instalment is extended to the date that is 21 days after service of the instalment notice.
(5) An instalment notice is not an assessment of tax liability.
17
Assessment of final contribution amount
17 Assessment of final contribution amount
17 Assessment of final contribution amount
(1) The final contribution amount payable by an insurer for a financial year is the amount determined by the Chief Commissioner in accordance with the following formula—
where—
Ft is the final contribution amount payable by an insurer for the financial year (represented by “t”).
Ct is the contribution target for the financial year (represented by “t”).
Pt is the total amount of premiums of the insurer subject to contribution in the financial year (represented by “t”).
Tt is the total amount of premiums of all insurers subject to contribution in the financial year (represented by “t”).
(2) The final contribution amount is to be rounded down to the nearest whole dollar amount.
18
Final assessment notice
18 Final assessment notice
18 Final assessment notice
(1) The Chief Commissioner must give to each insurer who is required to pay a contribution for a financial year a final assessment notice for that financial year.
(2) A final assessment notice is an assessment notice that specifies the final contribution amount payable by the insurer for the financial year.
(3) The Chief Commissioner is to issue a final assessment notice to each insurer required to pay a contribution for a financial year as soon as practicable after the return date for the financial year.
19
Contribution adjustment
19 Contribution adjustment
19 Contribution adjustment
(1) A final assessment notice that is issued to an insurer who has been assessed for an initial contribution amount for the financial year must also specify the following—
(a) if the final contribution amount exceeds the initial contribution amount for the insurer, the difference between those amounts (which is a contribution deficit),
(b) if the initial contribution amount exceeds the final contribution amount payable by the insurer, the difference between those amounts (which is a contribution surplus).
(2) If the final assessment notice specifies a contribution deficit, the insurer is required to pay the contribution deficit to the Chief Commissioner within 30 days after the final assessment notice is served on the insurer or by a later date specified by the Chief Commissioner.
(3) If the final assessment notice specifies a contribution surplus, the Chief Commissioner is required to refund the amount of the contribution surplus to the insurer within 30 days after issuing the final assessment notice.
Chief Commissioner may issue final assessment only
20 Chief Commissioner may issue final assessment only
20 Chief Commissioner may issue final assessment only
(1) The Chief Commissioner may, at any time after the return date for a financial year, issue a final assessment notice for the financial year to an insurer without having first issued an initial assessment notice in any circumstances that the Chief Commissioner considers appropriate.
(2) In that case, the final contribution amount specified in the notice is payable to the Chief Commissioner within 30 days after the final assessment notice is served on the insurer or by a later date specified by the Chief Commissioner in the notice.
21
Insured person may be required to pay contribution payable by foreign insurer
21 Insured person may be required to pay contribution payable by foreign insurer
21 Insured person may be required to pay contribution payable by foreign insurer
(1) The Chief Commissioner may require a person (an insured person) to pay the contribution that a foreign insurer is required to pay under this Act for premiums received by the foreign insurer in respect of any policy of insurance obtained, effected or renewed by the insured person, as if the insured person were liable for the contribution.
(2) The requirement is to be made by notice in writing.
(3) The contribution payable by the insured person is—
(a) the amount estimated by the Chief Commissioner as the proportion of the final contribution amount that would be payable by the foreign insurer for premiums received by the foreign insurer in respect of the policy of insurance, or
(b) if the regulations prescribe another way of calculating the contribution payable, the amount calculated as provided for by the regulations.
(4) This Act applies in relation to the contribution payable by the insured person (with any necessary adjustments) as if it were a final contribution amount payable by an insurer.
(5) This section applies whether the premium concerned was received in or outside the State.
(6) A person who pays a contribution under this section is entitled to recover the amount so paid from the foreign insurer as a debt, together with the costs of recovery, or to retain or deduct that amount out of any money in the person’s hands belonging or payable to the other person.
(7) The regulations may make further provision for the assessment and payment of contributions under this section and for the application of this Act in respect of those contributions.
Part 4
Contribution target
Part 4 Contribution target
Part 4 Contribution target
22
Treasurer to determine contribution target
22 Treasurer to determine contribution target
22 Treasurer to determine contribution target
(1) The Treasurer is to determine the contribution target for a financial year in accordance with the following formula—
where—
Ct is the contribution target for the financial year (represented by “t”).
Ft is the total funding target for the financial year (represented by “t”).
C(t-2) is the contribution target for the financial year that commenced 2 years before the period “t” (represented by “t-2”).
AC(t-2) is the actual contribution revenue for the financial year that commenced 2 years before the period “t” (represented by “t-2”), as certified by the Treasurer.
Ot is the recovered over-collection amount for the financial year (represented by “t”).
(2) To avoid doubt, if is a negative amount, that amount is to be subtracted from the total.
(3) Expressions used in this section have the meaning given to them by this Part.
(4) The Treasurer is to publish a notice in the Gazette of the amount determined by the Treasurer as the contribution target for a financial year on or before 15 April in the financial year before the financial year for which the determination is made or a later date appointed by the regulations.
Note—
Schedule 2 includes transitional provisions that are relevant to the calculation of the contribution target in the first 2 financial years of operation of this Act.
23
Total funding target
23 Total funding target
23 Total funding target
The total funding target for a financial year is the total of the following funding targets for the financial year—
(1) The recovered over-collection amount for a financial year is the sum of all over-collection amounts paid to or recovered by the Chief Commissioner under Part 3A of the Emergency Services Levy Insurance Monitor Act 2016 in the period of 12 months ending on the date of 31 March occurring before the commencement of the financial year, as determined by the Chief Commissioner.
(2) The Chief Commissioner is to advise the Treasurer of the recovered over-collection amount within 7 days after the end of that period or by a later date approved by the Treasurer.
Part 5
Assessments
Part 5 Assessments
Part 5 Assessments
25
Late assessment of initial contribution amount
25 Late assessment of initial contribution amount
25 Late assessment of initial contribution amount
An initial assessment notice for a financial year may be served on an insurer after the date of 30 April occurring immediately before the financial year for which the initial contribution amount specified in the notice is payable—
(a) if the Chief Commissioner does not become aware that an insurer is liable or likely to be liable for a contribution in the financial year until after the date of 31 March occurring immediately before the financial year, or
(b) in any other circumstances that the Chief Commissioner considers necessary.
26
Due dates for instalments to be adjusted for late assessment
26 Due dates for instalments to be adjusted for late assessment
26 Due dates for instalments to be adjusted for late assessment
(1) If the initial assessment notice for a financial year is not served by 30 April in the previous financial year, an instalment of the initial contribution amount is not payable until 60 days after service of the notice, or the date on which the instalment would be payable under Part 3, whichever is the later.
(2) If, as a result of this section, more than one instalment is payable on the same date, the Chief Commissioner may give one instalment notice in relation to all those instalments.
27
Use of estimates—failure to lodge return
27 Use of estimates—failure to lodge return
27 Use of estimates—failure to lodge return
If an insurer fails to lodge with the Chief Commissioner a return relating to a financial year by the return date—
(a) the Chief Commissioner may estimate the total amount of premiums subject to contribution for that insurer for the financial year for which the return is required using any information available to the Chief Commissioner (including information from previous returns, if any), and
(b) that estimate is taken to be the total amount of premiums subject to contribution of that insurer for that financial year.
28
Insurers previously liable to be treated as liable
28 Insurers previously liable to be treated as liable
28 Insurers previously liable to be treated as liable
(1) An insurer who is required to pay an initial contribution amount in a financial year is required to pay an initial contribution amount in the next financial year.
(2) This section applies even if a change in circumstances occurs, subject to subsection (6).
(3) A change in circumstances occurs if an insurer ceases to receive and to be entitled to receive premiums for relevant insurance.
(4) A change in circumstances that occurs during a financial year does not affect the assessment of, or an insurer’s liability to pay, an initial contribution amount for that financial year.
(5) A change in circumstances that occurs after 31 March in a financial year does not affect the assessment of, or an insurer’s liability to pay, an initial contribution amount for the next financial year.
(6) A change in circumstances that occurs before 31 March in a financial year does not affect the assessment of, or an insurer’s liability to pay, an initial contribution amount for the next financial year unless—
(a) the insurer gives notice to the Chief Commissioner of the change in circumstances before 31 March in the financial year before the financial year for which the initial contribution amount would otherwise be payable, and
(b) the Chief Commissioner is satisfied that a change in circumstances has occurred.
(7) In this section—
insurer includes any person who has been assessed as liable for an initial contribution amount for the financial year or the previous financial year, whether or not the person is still an insurer.
29
Late assessments or reassessments do not affect other insurers
29 Late assessments or reassessments do not affect other insurers
29 Late assessments or reassessments do not affect other insurers
(1) If the Chief Commissioner assesses or reassesses the liability of an insurer for an initial contribution amount in a financial year after the initial assessment date for that financial year, that assessment or reassessment does not affect the liability of any other insurer for an initial contribution amount for which a notice of assessment has already been issued.
(2) The initial assessment date for a financial year is the date of 31 March occurring immediately before the commencement of the financial year.
(3) If the Chief Commissioner assesses or reassesses the liability of an insurer for a final contribution amount in a financial year after the final assessment date for that financial year, that assessment does not affect the liability of any other insurer for a final contribution amount for which a notice of assessment has already been issued.
(4) The final assessment date for a financial year means the date that is 30 days after the return date for the financial year.
30
Certificate evidence
30 Certificate evidence
30 Certificate evidence
(1) A certificate signed by the Chief Commissioner that states the total amount of premiums of all insurers subject to contribution in a specified financial year is admissible in proceedings under this Act and, in the absence of evidence to the contrary, proof of that fact.
In this Act, the return date for a financial year means—
(a) the date of 30 September that occurs immediately after the end of the financial year, or
(b) another date decided by the Chief Commissioner and published in a notice in the Gazette.
32
Returns by insurers
32 Returns by insurers
32 Returns by insurers
(1) An insurer must, on or before the return date for each financial year, lodge with the Chief Commissioner a return showing—
(a) the total amount of premiums received by or due to the insurer for that financial year, for each class of policy that is relevant insurance, and
(b) the total amount of attributed charges for those premiums.
(2) The return must be lodged with a certificate from a qualified auditor, relating to the return, that is in a form approved by the Chief Commissioner.
(3) A qualified auditor means an auditor who is—
(a) a registered company auditor within the meaning of the Corporations Act 2001 of the Commonwealth, or
(b) a person not resident in the State who has qualifications that, in the Chief Commissioner’s opinion, are appropriate for the giving of the certificate.
(4) The return must disclose the accounting method used by the insurer to record premiums received by or due to the insurer.
(5) Only one accounting method may be used in the return.
(6) The insurer must use the same accounting method as the insurer used in the return provided for the previous financial year, unless a change in accounting method is approved by the Chief Commissioner.
(7) In this section—
accounting method means the cash accounting method or the accrual accounting method.
insurer includes any person who has been assessed as liable for a contribution for the previous financial year, whether or not the person is still an insurer.
Note—
It is an offence under section 57 of the Taxation Administration Act 1996 to fail to lodge a statement as required by this section.
It is also an offence under the Taxation Administration Act 1996 to provide false or misleading information to the Chief Commissioner.
33
Returns by insured persons
33 Returns by insured persons
33 Returns by insured persons
If a foreign insurer holds a risk in respect of property situated in the State, the insured person in respect of that risk must, before the return date for each financial year, lodge with the Chief Commissioner a return that shows the amount of the premiums paid by the insured person in respect of the property to the insurer during—
(a) the financial year, or
(b) another period decided by the Chief Commissioner.
Note—
It is an offence under section 57 of the Taxation Administration Act 1996 to fail to lodge a return as required by this section.
34
Failure to lodge returns
34 Failure to lodge returns
34 Failure to lodge returns
(1) A person who fails to lodge a return when required by this Act or by the Chief Commissioner, or who fails to include in any return any premiums that are subject to contribution, is taken to have committed a tax default for the purposes of Part 5 of the Taxation Administration Act 1996.
(2) In relation to the tax default—
(a) interest is payable in accordance with Part 5 of the Taxation Administration Act 1996 but accrues on the final contribution amount payable by the person for the period commencing on the last day allowed for lodging the return, or providing the correct particulars of premiums, and ending on the following day (whichever first occurs)—
(i) the day on which the return is lodged or the correct particulars are provided,
(ii) the day on which the assessment calculated on the basis of the return that is required, or the correct particulars that are required, is made,
(iii) the day on which the whole final contribution amount assessable to the person is paid, and
(b) penalty tax is payable in accordance with Part 5 of the Taxation Administration Act 1996 on the amount of the final contribution amount that is unpaid.
35
Notice that insurer is liable for contributions
35 Notice that insurer is liable for contributions
35 Notice that insurer is liable for contributions
(1) An insurer who receives, or becomes entitled to receive, premiums for relevant insurance in a financial year must, within 30 days of receiving or becoming entitled to receive the premiums, lodge with the Chief Commissioner a written statement advising the Chief Commissioner of that fact.
(2) Subsection (1) does not apply to an insurer who was liable for a contribution in the previous financial year.
Note—
It is an offence under section 57 of the Taxation Administration Act 1996 to fail to lodge a statement as required by this section.
36
Notice that insurer is no longer liable for contributions
36 Notice that insurer is no longer liable for contributions
36 Notice that insurer is no longer liable for contributions
(1) An insurer who ceases to receive, and to be entitled to receive, premiums for relevant insurance must, within 30 days of ceasing to receive and being entitled to receive the premiums, lodge with the Chief Commissioner a written statement advising the Chief Commissioner of that fact.
(2) In this section—
insurer includes any person who has been assessed as liable for a contribution for the financial year or the previous financial year, whether or not the person is still an insurer.
Note—
It is an offence under section 57 of the Taxation Administration Act 1996 to fail to lodge a statement as required by this section.
Part 7
Protection of policy holders
Part 7 Protection of policy holders
Part 7 Protection of policy holders
37
Information to policy holders
37 Information to policy holders
37 Information to policy holders
(1) An insurer is not to issue to a person any invoice or other statement as to the premium payable in respect of the issue or renewal of a policy of insurance to which this section applies unless the statement also indicates how much of the premium is estimated to be attributable to the contribution payable under this Act.
Maximum penalty—100 penalty units.
(2) This section applies to a policy of insurance—
(a) that is a policy of a class described in Part A of the table in Schedule 1, and
(b) the premium for which is subject to contribution under this Act.
(3) This section does not require an invoice or other statement to indicate how much of the premium payable is estimated to be attributable to the contribution payable under this Act if no part of the premium payable is estimated to be attributable to the contribution payable under this Act.
s 37: Am 2018 No 39, Sch 1 [1].
38
Attributed charges
38 Attributed charges
38 Attributed charges
(1) An attributed charge is any amount specified by an insurer, in an invoice or other statement given to a policy holder as to the premium payable in respect of the issue or renewal of a policy of insurance, as being the amount of the premium that is attributable to the contribution payable under this Act.
(2) For the purposes of this Act, the total amount of attributed charges for premiums of an insurer that are received by or due to the insurer in a financial year is the total of all attributed charges for those premiums.
(3) This section applies to any policy of insurance of a class described in Schedule 1.
39
Information to be provided to Treasurer
39 Information to be provided to Treasurer
39 Information to be provided to Treasurer
(1) The Chief Commissioner is to provide to the Treasurer, as soon as practicable after the return date for a financial year, the following information in relation to each insurer required to pay a contribution in the financial year—
(a) the final contribution amount payable by the insurer for the financial year,
(b) the total amount of attributed charges of the insurer for the financial year, as disclosed in the return for the financial year lodged by the insurer under this Act.
(2) If the Chief Commissioner’s assessment of the final contribution amount payable by an insurer for a financial year is subject to objection or review under the Taxation Administration Act 1996, the Chief Commissioner is to indicate that fact.
(3) The Chief Commissioner is to advise the Treasurer if an insurer’s final contribution amount is reassessed.
40
Price discrepancy
40 Price discrepancy
40 Price discrepancy
For the purposes of this Act, an insurer has a price discrepancy for a financial year if the total amount of attributed charges for premiums of the insurer for the financial year exceeds the final contribution amount payable by the insurer for the financial year.
41
Treasurer may require price discrepancies to be explained
41 Treasurer may require price discrepancies to be explained
41 Treasurer may require price discrepancies to be explained
(1) If an insurer has a price discrepancy for a financial year, the Treasurer may, by notice in writing served on an insurer, require the insurer to explain the price discrepancy.
(2) The notice may require the insurer to indicate any measures that will be taken by the insurer to remedy the price discrepancy.
(3) The insurer must respond to the notice within 21 days after the notice is served on the insurer or by a later date specified by the Treasurer in the notice.
(4) If the insurer fails to respond to the notice, or the Treasurer is not satisfied with the insurer’s response to the notice, the Treasurer may make public the fact that the insurer has a price discrepancy for the financial year. The Treasurer may identify the insurer and the financial year to which the price discrepancy relates.
(5) This section does not authorise the Treasurer, or a person employed in the Treasury, to disclose to any person other than a person employed in the Treasury—
(a) the final contribution amount payable by the insurer for the financial year, or
(b) the total amount of attributed charges of the insurer for the financial year, or
(c) the amount of any price discrepancy.
42
Protection from liability
42 Protection from liability
42 Protection from liability
(1) No liability is incurred by the State, the Treasurer or the Chief Commissioner, a person acting under the direction of the Treasurer or the Chief Commissioner or any person or body engaged in the administration of this Act or the Taxation Administration Act 1996 in respect of anything done, or omitted to be done, in good faith in the exercise of or to enable the exercise of a function conferred by this Part.
(2) In this section—
liability includes liability for defamation.
the State includes the Crown in right of the State and the Government of the State.
Part 8
Transition to fire and emergency services levy
Part 8 Transition to fire and emergency services levy
Part 8 Transition to fire and emergency services levy
transition period means the financial years commencing on 1 July 2017 and 1 July 2018.
44
No contribution for period after start date for levy
44 No contribution for period after start date for levy
44 No contribution for period after start date for levy
A contribution under this Act is not payable for any financial year that commences on or after the start date for the levy.
45
Chief Commissioner to advise Monitor of final contribution amounts
45 Chief Commissioner to advise Monitor of final contribution amounts
45 Chief Commissioner to advise Monitor of final contribution amounts
(1) The Chief Commissioner must provide the Monitor with the following, in relation to each insurer liable for a contribution payable for a financial year in the transition period—
(a) a copy of the Chief Commissioner’s assessment of the final contribution amount for the insurer for the financial year commencing on 1 July 2017,
(b) a copy of the Chief Commissioner’s assessment of the final contribution amount for the insurer for the financial year commencing on 1 July 2018.
(2) The Chief Commissioner must provide the Monitor with the information required under subsection (1) within 30 days after issuing a notice of assessment for the final contribution amount payable by an insurer for the financial year commencing on 1 July 2018.
(3) The Chief Commissioner is to provide the Monitor with such other information, in connection with an assessment, as the Monitor reasonably requires to exercise the Monitor’s functions under Part 3A of the Emergency Services Levy Insurance Monitor Act 2016.
46
Regulations may provide for transition to levy scheme
46 Regulations may provide for transition to levy scheme
46 Regulations may provide for transition to levy scheme
The regulations may make further provision for the winding up of the contribution scheme imposed by this Act and the transition to the fire and emergency services levy under the Fire and Emergency Services Levy Act 2017.
Part 9
Emergency services funding reform
Part 9 Emergency services funding reform
Part 9 Emergency services funding reform
pt 9, hdg: Am 2024 No 32, Sch 1[1].
46A
Definitions
46A Definitions
46A Definitions
(1) In this part—
classification includes sub-classification where a parcel of land is required by the guidelines to be sub-classified.
guidelines means guidelines issued by the Treasurer under section 47E as in force from time to time.
(2) In this part, a reference to a local council includes the Lord Howe Island Board and a reference to the area of a local council means, for the Lord Howe Island Board, Lord Howe Island.
s 46A: Ins 2024 No 32, Sch 1[1].
47
Insurers to provide information
47 Insurers to provide information
47 Insurers to provide information
(1) The Treasurer may, by notice in writing served on an insurer, require the insurer to provide specified information about any relevant insurance in relation to which the insurer receives, or is entitled to receive, premiums.
(1A) The notice must specify a reasonable time within which the information must be provided.
(1B) The information must be provided to the Secretary.
(2) Information may be obtained and used under this section only for the purposes of evaluating and implementing reforms to the way in which emergency services are funded.
(3) An insurer who fails to comply with a notice under this section is guilty of an offence.
(7) The Treasurer must not give a notice requiring information to be provided after 31 December 2026.
(8) This section authorises the Secretary or a person employed in the Treasury to—
(a) collect personal information provided under this section, and
(b) use the personal information for the purposes of this section.
(9) This section does not authorise the Secretary or a person employed in the Treasury to disclose the personal information to a person who is not employed in the Treasury.
(10) The personal information must be securely disposed of on or before 30 June 2028.
Classification of land to prepare for emergency services funding reform
47A Classification of land to prepare for emergency services funding reform
47A Classification of land to prepare for emergency services funding reform
(1) A local council must classify each parcel of land in its area to be within a classification specified in the guidelines.
(2) Each parcel of land that is a separate parcel of land for the purposes of the guidelines must be separately classified.
(3) The land must be classified in accordance with the guidelines.
(4) The local council must also identify if a parcel of land is owned by a person belonging to a class of persons specified in the guidelines.
s 47A: Ins 2024 No 32, Sch 1[2].
47B
Giving information to Chief Commissioner
47B Giving information to Chief Commissioner
47B Giving information to Chief Commissioner
(1) A local council must give the classification and ownership information under section 47A to the Chief Commissioner.
(2) The information must be given within the time and in the form and way required by the guidelines.
(3) A local council must give additional information to the Chief Commissioner if the Chief Commissioner reasonably requires the information to exercise the Chief Commissioner’s functions under this part.
(4) The Chief Commissioner may require the general manager or the public officer of a local council to certify the accuracy and completeness of any information the local council gives under this section.
(1) The Chief Commissioner must monitor whether local councils are complying with this part.
(2) The Chief Commissioner may exercise functions to ensure compliance, including—
(a) reviewing information given to the Chief Commissioner by a local council, and
(b) conducting audits, and
(c) imposing an administrative penalty of up to $2,200 on a local council for a failure to comply.
(3) A local council must cooperate with the Chief Commissioner in the exercise of the Chief Commissioner’s functions under this part.
s 47D: Ins 2024 No 32, Sch 1[2].
47E
Guidelines
47E Guidelines
47E Guidelines
(1) The Treasurer may issue guidelines for the purposes of this part.
(2) The guidelines must be made available on a website of Revenue NSW.
(3) The Treasurer may amend, replace or repeal the guidelines.
s 47E: Ins 2024 No 32, Sch 1[2].
47F
Reimbursing reasonable costs incurred by local council
47F Reimbursing reasonable costs incurred by local council
47F Reimbursing reasonable costs incurred by local council
Parliament recommends the appropriation of funds out of the Consolidated Fund to reimburse local councils for the reasonable costs of exercising functions under this part.
s 47F: Ins 2024 No 32, Sch 1[2].
Part 10
Miscellaneous
Part 10 Miscellaneous
Part 10 Miscellaneous
pt 10, hdg: Ins 2024 No 32, Sch 1[3].
48
Delegation of Treasurer’s functions
48 Delegation of Treasurer’s functions
48 Delegation of Treasurer’s functions
(1) The Treasurer may delegate to the Secretary of the Treasury or any person employed in the Treasury any of the Treasurer’s functions under this Act, other than a function under Part 4 or this power of delegation.
(2) A delegate may sub-delegate any function delegated by the Treasurer to any person employed in the Treasury, if authorised in writing to do so by the Treasurer.
49
Service of notices
49 Service of notices
49 Service of notices
Section 116 of the Taxation Administration Act 1996 applies to a notice served by the Treasurer under this Act in the same way as it applies to a notice served by the Chief Commissioner.
For the purposes of the Recovery of Imposts Act 1963, the validity or invalidity of taxation legislation includes the validity or invalidity of a decision of the Treasurer under Part 4.
51
Act binds the Crown
51 Act binds the Crown
51 Act binds the Crown
This Act binds the Crown in right of New South Wales and, in so far as the legislative power of the Legislature of New South Wales exists, the Crown in all its other capacities.
52
Regulations
52 Regulations
52 Regulations
(1) The Governor may make regulations, not inconsistent with this Act, for or with respect to any matter that by this Act is required or permitted to be prescribed or that is necessary or convenient to be prescribed for carrying out or giving effect to this Act.
(2) A regulation may create an offence punishable by a penalty not exceeding 20 penalty units.
53
Amendments to Schedule 1
53 Amendments to Schedule 1
53 Amendments to Schedule 1
(1) The regulations may amend Schedule 1.
(2) A regulation that amends Schedule 1 does not affect the application of this Act to a financial year that commenced before the regulation commenced.
Schedule 1
Insurance and premiums subject to contribution
Schedule 1 Insurance and premiums subject to contribution
Schedule 1 Insurance and premiums subject to contribution
| Column 1 | Column 2 |
| Classes of policies of insurance | Relevant proportion |
| Part A | | |
| 1 | Any insurance of property including consequential loss but not including any insurance of a class specified elsewhere in this Schedule | 80% |
| 2 | Houseowners and householders, however designated (buildings or contents or both) | 50% |
| Part B | | |
| 3 | Personal combined on personal jewellery and clothing, personal effects and works of art | 10% |
| 4 | Motor vehicle and motor cycle | 2.5% |
| 5 | Marine and baggage—any insurance confined to maritime perils or confined to risks involving transportation on land or in the air, including storage incidental to transportation by sea, land or air, but not including static risks* (which are to be declared under Item 1)[*static risks includes all movements of goods and/or stock and/or material associated with processing or storage operations at any situation.] | 1% |
| 6 | (a) Combined fire and hail on growing crops | 1% |
| | (b) Livestock | 1% |
| 7 | Aviation hull | Nil |
| 8 | Any insurance solely covering— | |
| | (a) Loss by theft | Nil |
| | (b) Plate glass | Nil |
| | (c) Machinery—confined to mechanical breakdown and/or consequential loss arising from mechanical breakdown | Nil |
| | (d) Explosion or collapse of boiler and pressure vessels—confined to damage other than by fire | Nil |
| | (e) Inherent or latent defects—confined to damage and/or consequential loss arising out of defective design, defective workmanship or defective materials but excluding any damage or consequential loss from fire | Nil |
Schedule 2
Savings, transitional and other provisions
Schedule 2 Savings, transitional and other provisions
Schedule 2 Savings, transitional and other provisions
sch 2: Am 2018 No 39, Sch 1 [2].
Schedule 3
Schedule 3
Schedule 3 (Repealed)
sch 3: Rep 1987 No 15, sec 30C.
Source text: opening excerpt
Sourced from legislation.nsw.gov.au, CC BY 4.0.
Part 1 Preliminary
Part 1 Preliminary
Part 1 Preliminary
1 Name of Act
1 Name of Act
1 Name of Act
This Act is the Emergency Services Levy Act 2017.
2 Commencement
2 Commencement
2 Commencement
This Act commences or is taken to have commenced on 1 July 2017.
3 Definitions
3 Definitions
3 Definitions
(1) In this Act—
Chief Commissioner means the Chief Commissioner of State Revenue under the Taxation Administration Act 1996.
contribution means the emergency services contribution payable under this Act.
contribution target means the contribution target determined by the Treasurer under Part 4.
final assessment notice—see section 18.
final contribution amount means a final contribution amount determined by the Chief Commissioner in accordance with section 17.
financial year means a period of 12 months commencing on 1 July in each year.
foreign insurer means an insurer who is not authorised under a law of the Commonwealth or of a State or Territory to carry on an insurance business.
former emergency services funding scheme means the scheme for funding certain fire and emergency services from contributions required to be paid by insurers under the following provisions, as in force before the commencement of the Fire and Emergency Services Levy Act 2017—
(a) Part 5 of the Fire and Rescue NSW Act 1989,
(b) Part 5 of the Rural Fires Act 1997,
(c) Part 5A of the State Emergency Service Act 1989.
function includes a power, authority or duty, and exercise a function includes perform a duty.
initial assessment notice—see section 12.
initial contribution amount means an initial contribution amount determined by the Chief Commissioner in accordance with section 13.
insurer means a person, partnership or association who (whether as an underwriter or otherwise)—
(a) issues or undertakes liability under policies of insurance against loss of or damage to property situated in the State, or
Prescribes special treatment for foreign insurers: the Chief Commissioner may require the insured person to pay the contribution that a foreign insurer would owe, and the insured may recover it as a debt from the foreign insurer (s 21).
Provides for transition to the Fire and Emergency Services Levy (the levy) with no contribution payable for financial years commencing on or after the levy start date (s 44), and sets out information flows to the Monitor during the transition (s 45; Part 8).
Introduces additional data collection, local council classification and registration obligations to support emergency services funding reform (Part 9, ss 46A-47F), including time‑limited powers for the Treasurer to require insurer information until 31 December 2026 (s 47(7)) and requirements for local councils to classify land and provide that information to the Chief Commissioner (ss 47A-47B).
The Act is to be administered together with the Taxation Administration Act 1996 (the TAA), which governs assessment, recovery, interest, penalties and dispute mechanisms (s 5; s 19(4); s 34). Transitional and savings provisions are in Schedule 2 and multiple amendments and inserts are recorded in the Act (see “Amendment history” below).
Main concepts
The Act’s central structural concepts are contribution target, initial and final contribution amounts, relevant insurance and attributed charges. These interact through formulas and administrative mechanics.
Contribution target (Ct)
The Treasurer sets the contribution target for each financial year by formula (s 22). Ct is computed from the total funding target Ft (the sum of the fire brigades, rural fire brigade and SES funding targets, s 23), adjusted by prior contribution targets and actual revenue (C(t-2) and AC(t-2)) and by recovered over‑collections Ot (s 24). The Treasurer must publish Ct in the Gazette by 15 April in the preceding financial year unless regulations specify otherwise (s 22(4)). Schedule 2 modifies the first two years’ calculations (sch 2 cl 6-7).
Initial contribution amount (provisional charge)
The Chief Commissioner issues an initial assessment notice specifying an initial contribution amount payable in instalments (s 12; s 15). The default formula allocates the contribution target Ct across insurers by the insurer’s share of total premiums two years prior (s 13(1)). If an insurer was not liable two years prior, the Chief Commissioner may instead estimate the insurer’s final liability (s 13(2)-(3)). Instalments are four equal payments due on 1 Sep, 1 Dec, 1 Mar and 1 Jun, with a 21‑day cure window before the remainder becomes immediately payable (s 15).
Final contribution amount (final allocation)
After returns are lodged and the return date passes, the Chief Commissioner issues final assessment notices specifying final contribution amounts determined by allocating Ct across insurers by their current-year share of premiums (s 17; s 18). Final assessments reconcile provisional instalments,deficits are payable within 30 days, surpluses must be refunded within 30 days (s 19).
Relevant insurance and calculation base
“Relevant insurance” is insurance against loss or damage to property in the State in classes set out in Schedule 1 (s 9). Schedule 1 lists classes in Part A and Part B and assigns a relevant proportion (percentage) for each class for calculating the total amount of premiums subject to contribution (s 11; Schedule 1). The regulations may amend Schedule 1 (s 53), but amendments do not affect financial years commencing before the regulation (s 53(2)).
Attributed charges and price discrepancy
“Attributed charges” are amounts insurers label on invoices or statements to policyholders as attributable to the contribution (s 38). Insurers must indicate on invoices for policies in Part A of Schedule 1 the estimated portion of the premium attributable to the contribution (s 37), subject to specified exemptions. The Chief Commissioner reports insurers’ final contribution amounts and the total of attributed charges to the Treasurer after each return date (s 39). If attributed charges exceed the final contribution amount for an insurer (a “price discrepancy”, s 40), the Treasurer may require an explanation and may publish that an insurer has a price discrepancy if unsatisfied (s 41). The Treasurer is restricted from disclosing certain specific figures to persons outside Treasury (s 41(5)).
Data, classification and reform workstreams
Part 9 introduces time‑limited powers for the Treasurer to compel insurers to provide data for evaluating and implementing emergency services funding reform (s 47). It also requires local councils to classify parcels of land per Treasurer-issued guidelines and provide that information to the Chief Commissioner (ss 47A-47B). The Chief Commissioner must keep a register of information (s 47C), may monitor compliance and impose administrative penalties on councils (s 47D), and guidelines are to be published and administered by the Treasurer (s 47E).
Administrative framework and enforcement interface
Administration and enforcement are conducted under the TAA (s 5). Failure to lodge returns or to include premiums is treated as a tax default with interest and penalty tax applied as per the TAA (s 34). The Recovery of Imposts Act applies to the validity of the Treasurer’s decisions under Part 4 (s 50). The Act binds the Crown (s 51) and allows the Governor to make regulations consistent with the Act, including creating offences up to 20 penalty units (s 52).
Who it affects
Primary payers and reporting entities
Insurers who receive or are entitled to receive premiums for classes listed in Schedule 1 are the primary persons liable to pay contributions under the Act (s 7; s 9; s 11). The Act defines “insurer” broadly to include persons, partnerships or associations who issue, undertake liability under, or receive premiums in respect of policies that insure property situated in the State (s 3 definition of insurer).
Secondary liable parties
Where a foreign insurer (one not authorised under Commonwealth or State or Territory law to carry on insurance business) holds the risk, the Chief Commissioner may require the insured person to pay the contribution on the foreign insurer’s behalf; that payment is recoverable by the insured person as a debt from the foreign insurer (s 21(1), (6)). This applies whether the premium was received in or outside the State (s 21(5)).
Policyholders and premium invoices
Policyholders are affected because insurers must, for Part A Schedule 1 policies, issue invoices or statements that indicate how much of the premium is estimated to be attributable to the contribution (s 37). Attributed charges are specifically defined and are reportable in returns (s 38; s 32).
Treasury, Chief Commissioner and Monitor
The Treasurer sets the annual contribution target (s 22) and has investigatory and disclosure powers in relation to price discrepancies (s 41). The Chief Commissioner administers assessments, collects payments, receives returns, keeps the register (s 32; s 17; s 18; s 47C) and advises the Treasurer of final figures (s 39). During the transition period (2017/18 and 2018/19), the Chief Commissioner must provide the Monitor with final assessments for those years (s 45). Part 9 also tasks Treasury staff and the Secretary with data collection and limits disclosure to Treasury employees (s 47(8)-(9)).
Local councils
Part 9 imposes duties on local councils to classify parcels of land according to Treasurer-issued guidelines and identify ownership classes specified in the guidelines (s 47A). Councils must provide that classification and ownership information to the Chief Commissioner in the form and time required by the guidelines and respond to additional information requests (s 47B). The Chief Commissioner monitors council compliance and can audit and impose administrative penalties up to $2,200 on councils for non-compliance (s 47D). The Act recommends parliamentary appropriation to reimburse councils for reasonable costs (s 47F), indicating a policy recognition of council cost burdens.
Auditors, Valuer-General and other relevant parties
Returns lodged by insurers must be accompanied by a certificate from a “qualified auditor” (s 32(2)-(3)). The Chief Commissioner’s register may also be disclosed to “relevant parties” including the Secretary of the Treasury, Valuer‑General, persons employed in Valuation NSW, local councils and their staff (s 47C(4)). Those relevant parties are taken to be “tax officers” for limited purposes under the TAA (s 47C(3)).
Other effects
The Act affects the timing of cash flows for insurers because of instalment requirements (s 15) and potential cash refunds or deficits after final assessment reconciliations (s 19). It affects insurers’ pricing disclosure practices and creates a compliance and audit footprint due to mandatory returns, accounting method constraints and auditor certification (s 32). Insurers may also face reputational exposure if the Treasurer publicises price discrepancies (s 41(4)).
Key duties and rights
Duties imposed on insurers
Liability and notification:
Insurers who receive or are entitled to receive premiums for relevant insurance must pay a contribution for each financial year they receive such premiums (s 6; s 7; s 8).
An insurer who receives or becomes entitled to relevant premiums must notify the Chief Commissioner within 30 days of that fact, unless the insurer was liable in the previous financial year (s 35).
Insurers who cease to receive such premiums must also notify within 30 days (s 36).
Assessments and payments:
Insurers are subject to initial assessments and must pay the initial contribution amount in four instalments (s 12; s 15).
Instalments are due on 1 September, 1 December, 1 March and 1 June (s 15(2)), with a 21‑day period after which the remainder becomes due if an instalment is unpaid (s 15(3)).
Insurers must pay any contribution deficit identified in a final assessment within 30 days or by a later date specified (s 19(2)); the Chief Commissioner must refund any surplus within 30 days (s 19(3)).
Returns and audit:
Insurers must lodge returns by the return date (usually 30 September after the financial year) showing total premiums by class and total attributed charges, accompanied by a qualified auditor’s certificate in a form approved by the Chief Commissioner (s 31; s 32(1)-(3)).
Returns must disclose and use a single accounting method (cash or accrual) and continue the prior year’s method unless approved by the Chief Commissioner (s 32(4)-(6)).
Information and cooperation:
Where the Treasurer issues a notice under s 47 (until 31 Dec 2026), insurers must provide specified information to the Secretary within a reasonable time (s 47(1)-(1B), (1B)). Failure to comply with such a notice is an offence with a maximum penalty of 20 penalty units (s 47(3)).
Duties on local councils and other public bodies (Part 9)
Councils must classify each parcel of land per guidelines, identify if parcels are owned by specified classes of persons, and provide that data to the Chief Commissioner in the required form and time (ss 47A-47B).
Councils must cooperate with the Chief Commissioner, and the Chief Commissioner may require certification of accuracy from the general manager or public officer (s 47B(4); s 47D).
Duties on the Treasurer and Chief Commissioner
Treasurer:
Must determine and publish the contribution target for each financial year in accordance with the prescribed formula and timelines (s 22).
May issue guidelines for classification in Part 9 and may require explanations of price discrepancies and publicly identify insurers with unresolved price discrepancies (ss 47E; 41).
May delegate most of the Treasurer’s functions under the Act to the Secretary or Treasury staff, except functions under Part 4 and the power of delegation itself (s 48).
Chief Commissioner:
Must issue initial and final assessment notices, receive, evaluate and reconcile returns, make estimates where returns are absent, and supply information to the Treasurer and the Monitor as required (ss 12-20; ss 27, 39, 45, 24).
Must keep a register of information collected under Part 9 and may provide register information to relevant parties (s 47C).
Rights and protections
Objection and review rights under the Taxation Administration Act 1996 apply to the Chief Commissioner’s assessments and the Chief Commissioner must indicate where an assessment is subject to objection or review when providing information to the Treasurer (s 39(2)). The Taxation Administration Act also governs interest, penalties, offences for false or misleading statements and the general administration and enforcement framework for the contribution (s 5; s 34).
Protection from liability: the State, Treasurer, Chief Commissioner and persons acting under their direction are protected from civil liability (including defamation) for actions done in good faith in exercising functions under Part 7 (s 42).
Confidentiality constraints: section 41(5) restricts the Treasurer and Treasury employees from disclosing to persons outside Treasury certain detailed contribution figures, even if the Treasurer publicly names an insurer with a price discrepancy.
Penalties and enforcement
Statutory enforcement architecture
The Act is administered together with the TAA, which supplies the principal enforcement and recovery mechanisms (s 5). Section 34 expressly treats failure to lodge returns or to include premiums as a “tax default” for the purposes of Part 5 of the TAA, thereby invoking the TAA’s interest, penalty tax and recovery regime (s 34(1)-(2)). The TAA provisions include interest accrual and penalty taxation on unpaid amounts and the usual objection and review rights.
Specific offences and penalties in the Act
Information to policyholders:
Failure by an insurer to include the estimated attributable contribution amount on invoices or statements for applicable Part A policies is an offence punishable by a maximum penalty of 100 penalty units (s 37(1)).
Failure to comply with Treasury data notices:
Under Part 9, an insurer who fails to comply with a Treasurer notice to provide specified information (s 47) is guilty of an offence with a maximum penalty of 20 penalty units (s 47(3)).
Local council administrative penalty:
The Chief Commissioner may impose an administrative penalty of up to $2,200 on a local council for failure to comply with Part 9 obligations (s 47D(2)(c)).
Regulations may create offences:
The Governor may make regulations and such regulations may create offences punishable by up to 20 penalty units (s 52).
TAA-linked sanctions
Non-lodgement or inaccurate returns are treated as tax defaults under s 34, which triggers interest and penalties under the TAA. Section 34(2) details that interest accrues on the final contribution amount from the last day allowed for lodging the return until various events (lodgement, assessment, payment). Penalty tax is payable under the TAA for unpaid final contribution amounts.
Assessment and recovery powers
The Chief Commissioner may estimate an insurer’s contribution where returns are not lodged (s 27), may issue final assessments without prior initial assessments in appropriate circumstances (s 20), and may reassess when necessary (s 29). Final assessments are payable within 30 days unless varied by the Chief Commissioner (s 20(2); s 19(2)).
The Recovery of Imposts Act is applicable to decisions under Part 4 (the Treasurer’s decision to determine Ct), affecting legal challenge pathways regarding validity (s 50).
Disclosure and reputational measures
For price discrepancies (where attributed charges exceed final contribution amounts), the Treasurer may require explanations and if unsatisfied may publicly state that an insurer has a price discrepancy and identify the insurer and year (s 41(1)-(4)). However, the Treasurer and Treasury employees are not authorised to disclose detailed figures outside Treasury (s 41(5)). Publication is therefore limited to the fact of a price discrepancy and identification of the insurer, subject to the restricted data disclosures.
Protections and limits
The Act protects public decision‑makers acting in good faith from personal liability for acts done under Part 7 (s 42). The Act binds the Crown (s 51), and the Governor can make regulations to carry out the Act (s 52). The Chief Commissioner must provide information to the Treasurer, and the Act requires the Chief Commissioner to advise the Treasurer if assessments are subject to objection or review (s 39(2)), integrating review rights under the TAA into the transparency chain.
How it interacts with other laws
Taxation Administration Act 1996 (TAA)
The Act is to be read together with the TAA which provides for administration, assessment, interest, penalty, objections and reviews (s 5). Specific cross-references include:
Treatment of non-compliance and tax defaults under the TAA (s 34(1)).
Interest and penalty tax consequences are applied pursuant to the TAA (s 34(2)).
The Chief Commissioner must indicate when assessments are subject to objection or review under the TAA when advising the Treasurer (s 39(2)).
Service of notices by the Treasurer under this Act is governed by s 116 of the TAA (s 49).
Fire and Emergency Services Levy Act 2017 and former emergency services funding scheme
The Act re-establishes the insurer-based contribution scheme pending transition to the levy. It expressly provides that no contribution is payable for financial years that commence on or after the levy start date (s 44). It also contains transition provisions requiring the Chief Commissioner to provide the Monitor with assessments for the 2017/18 and 2018/19 financial years (s 45) and empowers regulations to provide for the winding up and transition to the levy (s 46).
Schedule 2 ties the Act to the former insurer-based scheme, treating contributions before 2017/18 (and related returns and premium definitions) as references to the former scheme and sets special transitional calculations for the contribution target in the first two years of operation (sch 2 cl 4-6, 7). Schedule 2 also substitutes particular certified base figures and a 73.7% factor for initial Ct calculations in those early years (sch 2 cl 6).
Recovery of Imposts Act 1963
The Recovery of Imposts Act applies to decisions of the Treasurer under Part 4: for the purpose of that Act, the validity or invalidity of taxation legislation includes the validity or invalidity of a decision of the Treasurer under Part 4 (s 50). This ties the Treasurer’s contribution target decision to the established recovery/contest procedures.
Corporations Act 2001
The Act requires insurer returns to be accompanied by a qualified auditor’s certificate. A “qualified auditor” includes a registered company auditor within the meaning of the Corporations Act or a person not resident in the State with equivalent qualifications approved by the Chief Commissioner (s 32(2)-(3)).
Privacy and personal information law
Part 9 alters standard protections for personal information in a limited way: personal information collected under s 47 has the same meaning as under the Privacy and Personal Information Protection Act 1998 (s 47(11)), but the Secretary and Treasury employees are authorised to collect and use that personal information for the purposes of s 47 and must securely dispose of it by 30 June 2028 (s 47(8)-(10)). Disclosure of personal information to persons outside Treasury is prohibited (s 47(9)). The Chief Commissioner’s register permits disclosure to “relevant parties” who are taken to be tax officers for limited purposes (s 47C(2)-(3)), which interacts with confidentiality regimes under the TAA.
Local Government Act 1993 and valuation regimes
Part 9 references local council public officers with the definition borrowing from the Local Government Act 1993 (s 47B(5)) and integrates Valuer‑General and Valuation NSW staff as relevant parties permitted to receive register information (s 47C(4)(c)-(d)). These links show the Act’s reliance on existing local government and valuation frameworks to prepare data for possible property-based funding models.
Regulations and delegated instruments
The Governor may make regulations for matters necessary to carry out the Act and may create offences by regulation up to 20 penalty units (s 52). The regulations may also amend Schedule 1 (s 53) and make further provision for the transition to the levy (s 46).
Other Acts referenced for funding targets
The total funding target Ft used in the Treasurer’s formula is composed of funding targets that have meanings in:
Fire and Rescue NSW Act 1989 (fire brigades funding target) (s 23(a)),
Rural Fires Act 1997 (rural fire brigade funding target) (s 23(b)),
State Emergency Service Act 1989 (SES funding target) (s 23(c)).
The Act therefore relies on those Acts to define components of the Ct calculation.
Amendment history
The Act entered into force on 1 July 2017 (s 2) and contains express amendment and insertion notes reflecting later legislative changes that are recorded within the text you provided.
Recorded amendments and inserts in the source text include:
2018 amendments:
s 3 (definitions) was amended by 2018 No 59, Sch 5.1 (noted at s 3).
s 23 (total funding target) was amended by 2018 No 59, Sch 5.1 (noted at s 23).
Schedule 2 has amendment history recorded as Am 2018 No 39, Sch 1 [2] (see Schedule 2 header and notes). Schedule 2 contains multiple transitional adjustments that relate to early-year calculations and other transitional matters (sch 2 cl 6-7, etc.).
2024 amendments:
Part 9 and its headings were inserted or amended by 2024 No 32, Sch 1 [1] (see Part 9 heading note and the insertions of ss 46A and following).
Section 47 (insurers to provide information) was amended by 2024 No 23, Sch 1 [1]-[5] (see s 47 footnote). Multiple new sections in Part 9 (ss 46A, 47A-47F) and Part 10 heading changes are annotated as ins 2024 No 32, Sch 1 [1]-[3] respectively.
The initial contribution applies from 2017/2018 onward (sch 2 cl 2).
Special deadlines for initial assessments for 2017/2018 (sch 2 cl 3).
How prior contributions under the former emergency services funding scheme are to be treated (sch 2 cl 4).
Special rules for computing Ct in the first two years (sch 2 cl 6), including that C(t-2) is to be taken as 73.7% of certain 2015/2016 or 2016/2017 estimates certified by the Treasurer (sch 2 cl 6(2) and cl 6(4)), and certification of actual contribution revenue AC(t-2) (sch 2 cl 6(3), cl 6(5)).
A subtraction of a specific fixed amount ($6,854,100) from the contribution target for 2017/2018 to account for the Monitor’s previously recovered costs (sch 2 cl 7(1)).
Delayed operation of s 47 until 1 July 2020 (sch 2 cl 11), and non-applicability of some attributed charges obligations to years commencing before 1 July 2019 (sch 2 cl 10).
Other relevant legislative links
The Act repeatedly incorporates administrative, evidentiary and penalty provisions of the Taxation Administration Act 1996 (s 5; ss 19(4), 30, 34, 39(2)), and references the Fire and Emergency Services Levy Act 2017 as the replacement levy regime for which transition planning is required (Part 8, ss 44-46).
Regulatory power
The Governor may make regulations including amending Schedule 1 (s 52; s 53). Those regulations carry transitional limits: a regulation that amends Schedule 1 does not affect financial years that commenced before the regulation (s 53(2)).
The Act’s footnotes document the statutory provenance of the inserted Part 9 material and earlier amendments; practitioners should consult source materials and the consolidated statute for precise amendment dates and text as in force.
Litigation history
The statute text you provided does not record any cases, judicial decisions, or litigation history. The Act anticipates and embeds administrative review processes through the Taxation Administration Act 1996: the Chief Commissioner must indicate to the Treasurer if an insurer’s final contribution amount is subject to objection or review under the TAA (s 39(2)), and the TAA provides the objection and review mechanisms (s 5 and s 34(4) reference). Section 50 ties the Treasurer’s decisions under Part 4 to the Recovery of Imposts Act 1963 for purposes of legal challenge to validity.
For litigation or challenges arising under the Act, the procedural route for disputes will typically be via the objection, review and appeals machinery of the TAA and any proceedings permitted under the Recovery of Imposts Act in respect of decisions under Part 4. The Act itself does not list case law or judicial interpretations; to assess litigation trends, practitioners will need to search court and tribunal records and TAA objection outcomes after the Act’s commencement dates.
Gotchas
Several provisions create practical traps and timing risks for insurers, councils and others. The following are concrete items to watch, with statutory citations.
Initial assessment uses two‑year lag
The default initial assessment formula allocates Ct according to each insurer’s share of total premiums two financial years earlier (s 13(1)). That means the provisional billing depends on historical market shares. For insurers whose premiums have materially changed since t-2, provisional instalments may substantially diverge from the eventual final liability, producing either cash‑flow strain (if final > initial) or temporary over‑collection (if final < initial), though refunds are required (s 19(3)).
New insurers / cessation rules
If an insurer was not required to pay a contribution in t-2, the Chief Commissioner may estimate their likely final contribution as the initial contribution (s 13(2)-(3)). The Chief Commissioner’s estimate may lead to over‑collection because estimates can exceed eventual shares; refunds are required on finalisation (s 13 note; s 19(3)). Conversely, s 28 presumes that an insurer who is required to pay an initial amount in one year remains required in the next year, even if it ceases to receive premiums, unless the insurer notifies the Chief Commissioner before 31 March and the Chief Commissioner is satisfied a change occurred (s 28(1), (6)). That creates a compliance trap if an insurer ceases business and fails to notify by the date.
Rounding and small residuals
Initial and final contribution amounts are each rounded down to the nearest whole dollar (s 13(5); s 17(2)). Combined with allocations and instalments, small residual discrepancies can remain; the Act does not prescribe rounding rules for aggregated totals beyond the downwards rounding.
Instalment and late‑payment triggers
Instalments are payable on fixed dates (s 15(2)). If any instalment is not paid in full within 21 days after the due date, the remainder of the initial contribution amount becomes immediately due (s 15(3)). This creates a cliff payment risk triggered by a single missed instalment.
Strict return and auditor certificate requirements
Returns must be lodged by the return date with a qualified auditor’s certificate in a form approved by the Chief Commissioner (s 32(1)-(3)). A single accredited accounting method must be used, and changing methods requires Chief Commissioner approval (s 32(4)-(6)). The TAA offences and penalties apply to failure to lodge or providing false or misleading returns (s 32 note; s 34), and the Chief Commissioner may estimate an insurer’s premiums where no return is lodged (s 27), potentially creating an unfavourable assessed base.
Attributed charges and price discrepancy exposure
Insurers must indicate on invoices the estimated amount attributable to the contribution for Part A policies (s 37(1)-(2)). If the total amount of attributed charges disclosed in returns exceeds an insurer’s final contribution amount, this constitutes a price discrepancy (s 40) that can trigger a Treasurer notice requiring explanation (s 41(1)). The Treasurer may publicise the fact that an insurer has a price discrepancy and identify the insurer (s 41(4)). However, the Treasurer cannot disclose the final contribution amount, total attributed charges, or the amount of the price discrepancy to persons outside Treasury (s 41(5)), which complicates public scrutiny: the Treasurer can name an insurer but not publish the underlying figures.
Foreign insurers and insured persons
The Chief Commissioner may require an insured person to pay the contribution that a foreign insurer would be required to pay (s 21(1)). The insured person is then entitled to recover the amount as a debt from the foreign insurer (s 21(6)). This reverses collection risk from an uncovered foreign insurer to the policyholder and may have commercial consequences for insureds and foreign underwriters.
Data collection and time limits
Under s 47 the Treasurer may require insurers to provide specified information for emergency services funding reform, but only until 31 December 2026 (s 47(7)). The Secretary and Treasury employees may collect and use personal information but must not disclose it outside Treasury and must securely dispose of it by 30 June 2028 (ss 47(8)-(10)). These strict time horizons impose deadlines for litigation, data management and compliance planning.
Local councils’ duties and potential penalties
Local councils must classify each parcel in their area per guidelines and submit classifications to the Chief Commissioner (ss 47A-47B). The Chief Commissioner may audit compliance and impose administrative penalties up to $2,200 (s 47D(2)(c)). Councils should budget for classification workloads; Parliament has recommended appropriation to reimburse reasonable costs (s 47F), but reimbursement is a recommendation rather than an automatic entitlement.
Regulatory exposure through Schedule 1 amendments
Schedule 1 defines the policy classes and proportions used to calculate contributions. Regulations may amend Schedule 1 (s 53), but such amendments do not affect financial years commencing before the regulation (s 53(2)). Insurers should monitor potential regulatory adjustments that can change the contribution base mid-term.
Public naming without numeric disclosure
The Treasurer may publicise the existence of a price discrepancy and identify an insurer (s 41(4)) while being prohibited from disclosing the underlying numbers to anyone outside Treasury (s 41(5)). That asymmetric power may produce reputational effects for insurers without transparent numeric context.
How to comply
Practical compliance checklist and recommended operational steps, tied to statutory provisions.
Identify liability and notify promptly
Determine whether policies written fall within Schedule 1 classes and their relevant proportions (s 9; s 11; Schedule 1).
If you become an insurer receiving relevant premiums, lodge a written statement with the Chief Commissioner within 30 days of receiving or becoming entitled to receive such premiums (s 35). If you cease receiving such premiums, lodge the cessation statement within 30 days (s 36). These notifications are required and failure is an offence under the TAA (referenced in notes to ss 32, 35, 36).
Prepare for instalments and cashflow
Expect an initial assessment notice to arrive on or before 30 April preceding the financial year (s 12(3)), subject to permitted later service under ss 25-26 for late assessments.
Pay four equal instalments due 1 Sep, 1 Dec, 1 Mar and 1 Jun (s 15(1)-(2)). If an instalment is unpaid 21 days after its due date, the remainder becomes immediately payable (s 15(3)). Ensure banked funds or liquidity to cover instalments or to respond to late-payment cliffs.
Maintain accurate accounting and auditor relationships
Choose and document an accounting method (cash or accrual) for premiums and use the same method as the previous year unless you obtain Chief Commissioner approval to change (s 32(4)-(6)).
Arrange for a “qualified auditor” (registered company auditor under the Corporations Act or equivalent approved non‑resident) to review and issue the required certificate in a form approved by the Chief Commissioner for each return (s 32(2)-(3)). Ensure audit timetables align with return date deadlines.
Lodge returns on time and include attributed charges
Lodge returns by the return date (normally 30 Sep after the financial year) setting out total premiums by relevant class and the total amount of attributed charges (s 31; s 32(1)). Note that disclosure of total attributed charges in returns did not apply to financial years commencing before 1 Jul 2019 (sch 2 cl 10(1)).
If you label amounts on invoices as “attributed charges,” ensure those totals reconcile to the return figures and support the figures with documentation in case of inquiry (s 38).
Control and document pricing and disclosure to policyholders
For Part A Schedule 1 policies, include the estimated amount attributable to the contribution on invoices or statements (s 37). If you choose not to attribute any portion, ensure that the statement reflects that no part of the premium is estimated to be attributable to the contribution (s 37(3)).
Monitor the aggregate total of attributed charges to avoid a “price discrepancy” (s 40). If you receive a Treasurer notice under s 41, respond within 21 days (s 41(3)) with clear evidence of pricing methodology and planned remedial measures if required.
Prepare for audits and estimates
Maintain records to support premiums declared and the accounting method used; the Chief Commissioner may estimate premiums where returns are not lodged (s 27). Estimations can be made from prior returns or other available information and are taken to be the insurer’s premium base for assessment (s 27(a)-(b)).
Expect the Chief Commissioner to request additional information and to rely on auditor certificates. Timely responses will reduce the chance of adverse estimation.
New entrants and exits,manage notification and evidence
New insurers that were not liable two years prior should be prepared for the Chief Commissioner to estimate initial contributions (s 13(2)-(3)). Keep contemporaneous evidence to justify any later objections to estimates.
If you cease carrying relevant insurance, notify by 31 March in the financial year before the year the insurer would otherwise be liable if you want that change to affect the next year’s initial assessment (s 28(6)).
Foreign insurer arrangements
If you are an insured dealing with a foreign insurer, be aware that the Chief Commissioner may serve you with a notice requiring payment of the contribution an insurer would have paid (s 21(1)). Keep documentation to recover such amounts from the foreign insurer (s 21(6)).
Responding to Treasurer and Chief Commissioner requests beyond normal returns
If served under s 47 with a notice to provide information relevant to emergency services funding reform, comply within the reasonable time stated and provide the information to the Secretary (s 47(1)-(1B), (1B)). Non-compliance is an offence with a maximum 20 penalty units (s 47(3)). Note that s 47 notices cannot be given after 31 December 2026 (s 47(7)).
For local councils
Classify parcels of land per the Treasurer’s guidelines (s 47A). Submit classifications and ownership flags to the Chief Commissioner in the required form and time (s 47B).
Be prepared to certify accuracy if requested (s 47B(4)), cooperate with audits (s 47D(2)(b)), and plan for classification costs; Parliament recommends appropriation for reasonable reimbursements (s 47F).
Record retention and privacy compliance
For personal information collected under s 47, ensure secure handling consistent with the Act: only Treasury staff may receive such personal information, and it must be securely disposed of by 30 June 2028 (ss 47(8)-(10)). If participating as a relevant party receiving register data, comply with any tax officer obligations per the TAA (s 47C(3)).
Use objection and review processes
If you disagree with an assessment, use the objection and review mechanisms available under the TAA. Note that the Chief Commissioner must flag assessments subject to objection or review when providing information to the Treasurer (s 39(2)).
Monitor regulatory and schedule changes
Because the Governor may make regulations to amend Schedule 1 (s 53) and the Treasurer may issue guidelines for classification (s 47E), maintain a regulatory watch to respond to changes in the contribution base and council guidelines. Schedule 1 amendments do not affect financial years that commenced before the regulation (s 53(2)).
Practical file checklist
Maintain:
copies of all returns (including prior-era returns if relevant per sch 2 cl 12),
auditor certificates,
accounting policy documentation,
invoices/statements showing attributed charges,
notifications to the Chief Commissioner under ss 35-36,
correspondence with the Treasurer or Chief Commissioner regarding price discrepancies,
evidence to support any estimates used or contested.
Following these steps aligns operational practice with the specific statutory duties and reduces exposure to estimation, interest/penalty flow, public naming, and regulatory non-compliance under the Act and the TAA.
(b) receives premiums in respect of policies of insurance against loss of or damage to property situated in the State on behalf of or for transmission to a person, partnership, association or underwriter outside the State.
Monitor means the Emergency Services Levy Insurance Monitor appointed under the Emergency Services Levy Insurance Monitor Act 2016.
premiums—see section 4.
price discrepancy—see section 40.
relevant insurance—see section 9.
return date—see section 31.
subject to contribution—see section 11.
total amount of attributed charges—see section 38.
Note—
The Interpretation Act 1987 contains definitions and other provisions that affect the interpretation and application of this Act.
(2) Notes included in this Act do not form part of this Act.
(3) In this Act, a reference to a financial year, when immediately preceded by a reference to particular years (in the format of [year]/[year]), is a reference to the financial year that commences and ends in those years (respectively).
Note—
For example, a reference to the 2017/2018 financial year is a reference to the financial year commencing in 2017 and ending in 2018.
s 3: Am 2018 No 59, Sch 5.1.
4 Premiums
4 Premiums
4 Premiums
(1) In this Act, a reference to a premium, or to the amount or total amount of premiums, includes any brokerage or commission paid or due to be paid or allowed to be paid on—
(a) the premiums, or
(b) bonuses or return premiums allowed in respect of a policy of insurance the subject of the premiums, or
(c) such part of the premiums received by or due to the insurer as is paid or due to be paid by way of reinsurance by the insurer to another insurer in the State.
(2) However, premiums do not include GST or duty payable under the Duties Act 1997 in respect of policies of insurance the subject of the premiums.
5 Taxation Administration Act 1996
5 Taxation Administration Act 1996
5 Taxation Administration Act 1996
This Act is to be read together with the Taxation Administration Act 1996 which provides for the administration and enforcement of this Act and other taxation laws.
Part 2 Emergency services insurance contribution
Part 2 Emergency services insurance contribution
Part 2 Emergency services insurance contribution
6 Emergency services insurance contribution
6 Emergency services insurance contribution
6 Emergency services insurance contribution
An emergency services insurance contribution is payable in respect of premiums for relevant insurance.
Note—
This Act re-establishes an emergency services insurance contribution scheme pending the introduction of the levy imposed by the Fire and Emergency Services Levy Act 2017.
7 Insurers are liable to pay contribution
7 Insurers are liable to pay contribution
7 Insurers are liable to pay contribution
An insurer who receives or is entitled to receive premiums for relevant insurance is required to pay the contribution.
8 Contribution payable for each financial year
8 Contribution payable for each financial year
8 Contribution payable for each financial year
A contribution is payable in respect of each financial year in which the insurer receives or is entitled to receive premiums for relevant insurance.
9 Meaning of “relevant insurance”
9 Meaning of “relevant insurance”
9 Meaning of “relevant insurance”
For the purposes of this Act, relevant insurance means insurance against loss or damage to property in the State under a class of policy specified in Schedule 1.
10 Amount of contribution
10 Amount of contribution
10 Amount of contribution
(1) The contribution payable by an insurer in respect of a financial year is the final contribution amount for that insurer for that financial year.
(2) However, an insurer is required to pay an initial contribution amount by instalments, in advance of a determination of the final contribution amount, as provided for by Part 3.
11 Premiums that are subject to contribution
11 Premiums that are subject to contribution
11 Premiums that are subject to contribution
(1) Both an initial contribution amount and a final contribution amount are calculated by reference to the total amount of premiums received by or due to an insurer that are subject to contribution.
(2) A premium is subject to contribution if the premium is for a class of policy specified in Schedule 1.
(3) For the purposes of this Act, the total amount of premiums that are subject to contribution in a financial year is the total of the relevant proportion of the total amount of premiums received by or due to an insurer in the financial year for each class of policy specified in Schedule 1.
(4) The relevant proportion for a class of policy specified in Schedule 1 is the percentage specified in relation to that class of policy in Schedule 1.
(5) An assessment under this Act of the total amount of premiums of an insurer that are subject to contribution in a particular financial year is to be made by reference to Schedule 1 as in force at the commencement of that financial year.
Part 3 Calculation and payment of contribution
Part 3 Calculation and payment of contribution
Part 3 Calculation and payment of contribution
12 Initial assessment notice
12 Initial assessment notice
12 Initial assessment notice
(1) The Chief Commissioner must give to each insurer who is required to pay a contribution for a financial year an initial assessment notice for the financial year.
(2) An initial assessment notice is an assessment notice that specifies the initial contribution amount payable by the insurer for the financial year.
(3) An initial assessment notice for a financial year must be served on an insurer on or before the date of 30 April in the financial year before the financial year for which the initial contribution amount is payable, subject to Part 5.
13 Assessment of initial contribution amount
13 Assessment of initial contribution amount
13 Assessment of initial contribution amount
(1) The initial contribution amount payable by an insurer for a financial year is the amount determined by the Chief Commissioner in accordance with the following formula—
where—
It is the initial contribution amount payable by an insurer for the financial year (represented by “t”).
Ct is the contribution target for the financial year (represented by “t”).
P(t-2) is the total amount of premiums of the insurer subject to contribution in the financial year that commenced 2 years before the period “t” (represented by “t-2”).
T(t-2) is the total amount of premiums of all insurers subject to contribution in the financial year that commenced 2 years before the period “t” (represented by “t-2”).
(2) The Chief Commissioner may, instead of determining the initial contribution amount as provided for by subsection (1), estimate the final contribution amount that is reasonably likely to be payable by the insurer for the financial year. In that case, that estimate is the initial contribution amount payable by the insurer for the financial year.
(3) Subsection (2) applies only if the insurer was not required to pay a contribution in the financial year that commenced 2 years before the financial year for which the determination is made.
(4) An assessment that is made under subsection (2) does not affect the determination of the initial contribution amount for other insurers who are assessed in accordance with subsection (1).
Note—
An assessment under subsection (2) may result in the total of all initial contribution amounts exceeding the contribution target for the financial year, but when final assessments are made any over-collection amounts are refunded to insurers.
(5) The initial contribution amount is to be rounded down to the nearest whole dollar amount.
14 Insurer liable for initial contribution amount
14 Insurer liable for initial contribution amount
14 Insurer liable for initial contribution amount
An insurer who is assessed for an initial contribution amount must pay the initial contribution amount to the Chief Commissioner in accordance with this Act.
15 Initial contribution amount to be paid in instalments
15 Initial contribution amount to be paid in instalments
15 Initial contribution amount to be paid in instalments
(1) The initial contribution amount is payable in 4 equal instalments.
(2) An instalment is payable by the date of 1 September, 1 December, 1 March and 1 June in the financial year for which the initial contribution amount is payable.
(3) If an instalment is not paid in full within 21 days after the due date, the remainder of the initial contribution amount payable by the insurer for the financial year becomes due and payable.
16 Instalment notices
16 Instalment notices
16 Instalment notices
(1) The Chief Commissioner must give to each insurer who is required to pay an initial contribution amount a written notice, in relation to each instalment that is payable (an instalment notice), that specifies—
(a) the amount of the instalment payable under the instalment notice, and
(b) the date by which the instalment is payable.
(2) The instalment notice must state the following—
(a) the initial contribution amount payable by the insurer for the financial year,
(b) the amount of any instalments already paid by the insurer for the financial year,
(c) the amount that remains to be paid for the financial year after payment of the instalment.
(3) An instalment notice must be served on the insurer no less than 21 days before the date by which the instalment is payable.
(4) If the instalment notice is served on an insurer less than 21 days before the date by which the instalment is payable, the due date for payment of the instalment is extended to the date that is 21 days after service of the instalment notice.
(5) An instalment notice is not an assessment of tax liability.
17 Assessment of final contribution amount
17 Assessment of final contribution amount
17 Assessment of final contribution amount
(1) The final contribution amount payable by an insurer for a financial year is the amount determined by the Chief Commissioner in accordance with the following formula—
where—
Ft is the final contribution amount payable by an insurer for the financial year (represented by “t”).
Ct is the contribution target for the financial year (represented by “t”).
Pt is the total amount of premiums of the insurer subject to contribution in the financial year (represented by “t”).
Tt is the total amount of premiums of all insurers subject to contribution in the financial year (represented by “t”).
(2) The final contribution amount is to be rounded down to the nearest whole dollar amount.
18 Final assessment notice
18 Final assessment notice
18 Final assessment notice
(1) The Chief Commissioner must give to each insurer who is required to pay a contribution for a financial year a final assessment notice for that financial year.
(2) A final assessment notice is an assessment notice that specifies the final contribution amount payable by the insurer for the financial year.
(3) The Chief Commissioner is to issue a final assessment notice to each insurer required to pay a contribution for a financial year as soon as practicable after the return date for the financial year.
19 Contribution adjustment
19 Contribution adjustment
19 Contribution adjustment
(1) A final assessment notice that is issued to an insurer who has been assessed for an initial contribution amount for the financial year must also specify the following—
(a) if the final contribution amount exceeds the initial contribution amount for the insurer, the difference between those amounts (which is a contribution deficit),
(b) if the initial contribution amount exceeds the final contribution amount payable by the insurer, the difference between those amounts (which is a contribution surplus).
(2) If the final assessment notice specifies a contribution deficit, the insurer is required to pay the contribution deficit to the Chief Commissioner within 30 days after the final assessment notice is served on the insurer or by a later date specified by the Chief Commissioner.
(3) If the final assessment notice specifies a contribution surplus, the Chief Commissioner is required to refund the amount of the contribution surplus to the insurer within 30 days after issuing the final assessment notice.
(4) This section is subject to Part 4 of the [Taxation Administration Act 1996](/v
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