It is extremely disappointing that after last year's white paper and the NSW State Government's have your say program that they have decided to delay the removal of Fire Service Levies in that state. The reason given is they want to see how the transition of the tax in Victoria from insurance to property rates goes. From our position Victoria is a case of how not to do it.

As a result NSW policyholders continue to pay an Emergency Services Levy on their policies, which is compounded by the addition of GST and state stamp duty.

Insurer statutory contributions to NSW fire and emergency services have increased from $376 million in 2001-02 to a staggering $711 million (nearly 3/4 billion dollars) in 2011-12.

This represented a real increase in insurer contributions of 25% over the period.

As NoTaxOnInsurance have repeatedly stated, having only those that are prudent and risk averse to fund the vast majority of the fire brigades is completely unfair when the entire community benefits. A much broader tax base is required to stop the damage done by under and non insurance that having such high taxes on insurance causes.

It took the horrific "Black Saturday" bush fires to occur and a Royal Commission before the Victorian Government got it. My genuine hope is that it will not take a catastrophe of this size with the fall out of so many families and businesses effected due to under insurance before the NSW finally get it.

But governments cannot help themselves. They like the hidden taxes regardless of the consequences. .

Queensland recently increased stamp duties on home/contents and motor premiums to 9%.

Last year, Tasmania increased its stamp duties to 10.

Only the ACT government are to be congratulated for reducing stamp duty on insurance.