All new and renewing policies from 1st July 2026 are subject to new Fire & Emergency Levy calculations. Some insurers are also applying the new rates to changes made to existing polices after 1st July, for example if there is a change to the sum insured of a building, or an increase or decrease in the amount of cover under a tools policy.
Depending on the type of cover this may result in an increase or decrease in the amount you pay:
Contract Works Insurance
In most cases the FEL collected on a contract works insurance policy will be reduced. FEL is will also no longer be collected when a contract works policy is insuring an existing structure for contract perils only (ie. the existing structure is still insured elsewhere for standard perils).
The exception is if an existing structure is insured for full cover under contract works insurance, where there may be an increase.
Vehicles
Standard vehicles under 3.5 tonnes will see an increase in the levy payable from $9.53 to $25 per vehicle.
Vehicles over 3.5 tonnes were charged using a rate but will now be charged a flat fee of $25. For vehicles over about $21,000 this will result in a reduction in the levy.
Vehicles insured for third party only will now be charged a levy of $25 (previously exempt).
Boats
No levy is charged on boats but trailers will be charged $25. Contents on the boat may be charged a levy in some cases.
Tools & Equipment
The levy collected on a $20,000 tools policy will decrease by $8.38.
Residential Property
For residential properties, such as house and contents, where the levy is capped there will be a slight reduction.
Commercial Property
The commercial levy rate has reduced from 11.95c per $100 to 7.76c per $100. However, the levy is now charged on the sum insured not the indemnity value. If the FEL was calculated on the indemnity value of your building in the past you may experience a substantial increase in your levy, depending on how much higher your sum insured is compared to the indemnity valuation.
As a rough guide, for every $100,000 of building value the reduction in levy based on the rate change is $41.90.
But, if your indemnity value (the building’s present/depreciated value) was $600,000 and your sum insured (the building’s replacement value) is $1m, you’ll now be paying $776 instead of $717 under the old system.
