“Instead of the emergency services levy (ESL) being part of your insurance premium, it will now be itemised on your council rates notice,” Member for Cootamundra Katrina Hodgkinson said.

“With the ESL being removed from insurance premiums, it is important to ensure savings are passed on to consumers.

“The NSW Government has therefore appointed Professors Allan Fels AO and Professor David Cousins AM as Insurance Monitor and Deputy Insurance Monitor to do just that.

“They have the power to fine insurers up to $10 million for not passing on savings to property owners.”

Young insurance broker Mark Mellish said insurance premiums should become cheaper for home and business owners.

"In home and certain sections of a business policy, traditionally the ESL was charged and then that levy attracted GST (10%), then that amount attracted stamp duty (usually 9%), so effectively if you look at it, it was a tax on a tax on a tax," he said.

"By removing the fire levy, insurance policies should be reduced by a greater amount than the fire levy charged (had it been retained) because those that insure won't have the GST and stamp duty attached to that levy – it has a multiplier effect.”

"I am not saying the insurers will keep their premiums at the same level as last year - insurance is about pricing risk so just because they charged $1,000 dollars on your previous renewal doesn’t mean it will be $1,000 this year, but Allan Fels has a job to do and will fine insurers considerably if they don't pass on the savings from the ESL. 

"Victoria moved to a similar structure in 2012 and colleagues of mine down there told me there was not a marked increase in insurer premiums across the board – although we are in a different point in the insurance cycle 5 years later I am hopeful NSW will be much the same as they were.”

Ms Hodgkinson also sought to allay fears that renters would not pay the levy by pointing out landlords will more than likely pass on the ESL fee to their tenants.

“Under residential tenancies legislation in NSW, landlords are required to pay the ESL,” she said.

“But in the case of commercial properties, liability to pay the ESL is a matter for the commercial parties to negotiate, as is the case with all legislated rates, charges and taxes.”