NSW will defer plans to end its emergency services levy on insurance while it assesses similar reforms that started in Victoria this month.

The State Government has previously made a number of statements about reforming the funding system for emergency services.

But Police and Emergency Services Minister Michael Gallacher told a recent Rural Fire Service Association (RFSA) conference that Victoria’s transition away from a funding system based on insurance premiums for its fire services levy – which came into effect on July 1 – will be examined before NSW makes any final decisions.

“We’ve taken a decision as a result of the submissions that were made, both verbal and in writing, to look closely at what is happening in Victoria.”

The State Government is prepared to hold further talks about the levy “over the next one to two years” after issues were raised by groups including the RFSA, he says.

NSW proposes replacing the levy, which provides about 75% of funding for the emergency services, with a broader property-based arrangement.

Victoria has introduced a charge based on property tax to replace its insurance-linked fire services levy.

“We have made it clear we need a funding model for our fire and emergency services that is sustainable and fair,” a spokesman for Mr Gallacher told insuranceNEWS.com.au.

“That is why it is so important to closely examine the implementation and operation of the Victorian reform experience.”

The Insurance Council of Australia says Victoria’s removal of the fire services levy provides a fairer system.

“NSW is now the only remaining mainland state to fund its fire services through insurance premiums, and the [insurance council] encourages the NSW Government to renew its commitment to reforming its emergency services levy,” it said.

The RFSA says a property charge would exclude some large organisations that do not pay rates.

“We’ve seen from other states such as Queensland that when [a property-based] emergency services levy is introduced, rural fire brigades lose out and are disadvantaged,” RFSA President Tim Arnott said.