NSW Proposes New Property Levy to Support Emergency Services — Sydney Auction Clearance Rate at 52%

Weekly Market Focus

Property owners in New South Wales could soon face a new annual levy of up to AUD $623 to help fund the state’s emergency services system, including Fire and Rescue NSW, the Rural Fire Service and the SES. Under reform proposals released by the NSW Treasury this month, the government is considering replacing the current Emergency Services Levy (ESL) — which is embedded in insurance premiums — with a land value–based annual property levy.

A spokesperson for Treasurer Daniel Mookhey said the current system is “unfair, inefficient and unsustainable,” arguing that most of the funding burden is currently carried by households and businesses that purchase insurance, adding an estimated 18% to 34% to insurance premiums.

Under five reform models proposed by Treasury, the new levy would be charged according to land value and apply across residential, commercial, industrial and agricultural properties.

One four-tier model suggests:

Residential properties with a land value below AUD $302,100 would pay around AUD $175 per year.
Properties with land values above AUD $1.41 million would face charges of around AUD $523 annually.

Under an alternative six-tier model, the highest-value properties could pay as much as AUD $623 per year.

Data shows that in 33 Sydney councils, nearly half already have median land values exceeding AUD $1.41 million, including areas such as Woollahra, Mosman, Waverley, Strathfield, Ryde, Burwood and the Inner West. This means a large number of Sydney homeowners could fall into the higher levy brackets.

However, the proposal has also triggered political debate. Former premier Dominic Perrottet previously attempted to replace stamp duty with an annual land tax, a move criticised at the time by Labor as a “forever tax” on the family home. The opposition is now questioning whether the Minns government is contradicting its earlier position.

Treasury maintains that the reform would be “revenue neutral,” meaning the removal of the insurance-based levy would be offset by the new property charge. Treasury modelling also suggests that around 55% of insured properties could be financially better off under the new system. With climate risks and insurance premiums continuing to rise, the proportion of uninsured homes may also increase in coming years, and the NSW government hopes the reform will help ease insurance costs for households.

The Ultimate Guide to Land Zoning in NSW

Last Week’s Auction Results

Sydney: A total of 807 properties were taken to auction, with results reported for 462 properties. Of these, 238 were sold, resulting in a clearance rate of 52%. The total auction value reached AUD 251,258,190, with a median price of AUD 1,598,444.

Melbourne: A total of 890 properties were taken to auction, with results reported for 601 properties. Among them, 358 were sold, achieving a clearance rate of 59%. The total auction value amounted to AUD 251,943,456, with a median price of AUD 955,000.