Local Government NSW (LGNSW) has called on the NSW Government to ensure any reformed Emergency Services Levy (ESL) is collected by Revenue NSW, rather than by individual councils.
The call followed the State Government’s recent announcement that proposed reforms to the ESL would be referred for inquiry.
Councils are currently required to remit the levy, despite it being a state charge, placing additional administrative pressure on local governments.
LGNSW President, Darcy Byrne, said councils supported reforms to make the levy fairer and more equitable, but opposed being responsible for its collection.
“LGNSW would strongly oppose any move aimed at forcing councils to absorb increased administrative costs and take responsibility for what is clearly a state matter,” Byrne said.
“After years of cost shifting to local government, many councils are in a challenging financial position. Requiring councils to collect a State Government levy would be confusing for ratepayers and would further hamper councils’ ability to manage their finances effectively.
“In particular, for smaller regional and rural councils facing ongoing financial pressures, administering a state levy would be both unreasonable and unfair.”
While most of the ESL is funded through insurance levies, 11.7 per cent is funded through a levy on councils. The levy represents one of the largest cost shifts to local government, totalling $236 million in 2025-26.
Byrne said LGNSW would present its case to the inquiry, calling for greater fairness and transparency.
“It is critical that the ESL be removed from councils to ensure efficiency and accountability. It would be far more effectively collected by a single State Government agency, as is done in other states.”
