The NSW parliament has finalised membership of a committee examining options to replace the emergency services levy on insurance, as a long-running process moves ahead.

Independent MP Jacqui Scruby will chair the Legislative Assembly’s Select Committee on Emergency Services Funding Reform, which will report by November 18.

Also on the committee are Labor MPs Trish Doyle, Charishma Kaliyanda and David Mehan; Liberals Monica Tudehope and James Wallace; Nationals MP Tanya Thompson; and Greens MP Tamara Smith.

Local Government Minister Ron Hoenig says the state has passed laws for collection of property-level insurance data and land classifications performed by local councils, and work so far has involved analysis and modelling.

Treasury has developed five reform options that will be outlined in a paper the government will refer to the committee.

“The parliamentary inquiry will build on the extensive public consultation carried out and seek to develop a consensus and strengthen support for the reform’s direction,” Mr Hoenig told parliament last week. “This is an important step in moving funding for emergency services to an equitable and sustainable footing that cuts the cost of insurance.”

Mr Hoenig says the ESL burden unfairly falls only on those who take out property insurance, and the cost of residential cover increased 48% from 2017-18 to 2023-24, adding to household budget pressures. 

Premier Chris Minns announced the ESL removal in November 2023, putting it back on the agenda after a previous plan was dropped by the Berejiklian government in 2017 due to concerns about repercussions.

Labor’s moves to revive the reform also include appointing the Independent Pricing and Regulatory Tribunal as the Emergency Services Levy Insurance Monitor.

“We want to work with the opposition and the crossbench to plot the last leg of the journey,” Mr Hoenig said. “We will not repeat the mistakes of the past and we are not interested in rushing it. But we are determined to fix it.”

Liberal MP James Griffin says the committee's composition and independent chair will ensure “a multitude of views and perspectives are shared” on a challenging area.

“This reform is important work and the opposition looks forward to working with the government on the committee,” he told parliament. 

The November reporting timetable “while ambitious, is welcome”, he says.