The NSW Government proposes to switch to a property-based levy to fund fire and emergency services, from the current insurance-based levy.
The Property Council NSW has made a submission in response to the proposal that discusses design principles required.
Property Council NSW has design principles are needed to make sure new funding arrangements reflect tax design principles, and fairly distribute the funding burden.
These principles include:
Capture all property: all vehicles, residential and non-residential property should be included
Recognise risk: recognise that commercial property invests heavily in fire suppression systems
Cap current contributions: increase the pool of contributors to eliminate the need to increase share paid by investment grade assets
Unimproved valuation base: unimproved land rates should the basis of any new levy, as is the case in land tax and local government rates
No windfall gains: total tax rate should only rise by CPI. Growth should not be fuelled by windfall gains via land valuation rises