Have you ever looked at a landlord insurance premium and noticed an extra charge for ESL (also known as FSL)? You are not alone. Here is what you need to know.
ESL stands for Emergency Services Levy. It is a fee collected by insurance companies and paid to the New South Wales Government to help fund fire and emergency services across the state.
If you have home, contents, landlord, or motor insurance in NSW, this fee is included in your annual insurance premium. The amount can change each year and is determined by the state government.
TIP: While it is commonly called ESL, EBM RentCover policyholders will see FSL on their invoice – short for Fire Services Levy. It is essentially the same thing.
Why is ESL added to insurance premiums?
Each financial year, the NSW Government requires insurance companies to contribute funding for the state’s fire and emergency services, including:
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Fire and Rescue NSW
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NSW Rural Fire Service
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NSW State Emergency Service
How much is ESL?
In the 2024–2025 financial year, insurers in NSW are required to contribute approximately $1.3 billion to fund these emergency services. To meet this obligation, insurance companies pass on a percentage of this contribution to policyholders through the ESL, included as part of insurance premiums.
From October 2025, the ESL for EBM RentCover policies will increase from 12% to 14%, reflecting higher demand for emergency services across the state.
Will this increase impact EBM RentCover landlord insurance premiums?
Yes – all properties insured in NSW will see changes to their insurance costs due to the higher ESL. This increase will apply to both new EBM RentCover policies and renewal premiums. If you own or manage investment properties outside of NSW, you will not be impacted. This change applies only in NSW.
How do other states fund ESL?
NSW is the only mainland state to fund ESL through insurance premiums. Other states spread the cost across property rates, which some argue is a fairer approach as it shares the cost among all property owners, not just those who take out insurance.
I heard ESL was being abolished in NSW – is that true?
At one point, the NSW Government proposed funding ESL through property rates, similar to other states. However, that change did not go ahead, and the levy remains part of property insurance premiums in NSW.
What do NSW landlords need to do?
Nothing! All new policies and renewals already include ESL in the premium. If you have concerns about paying ESL, you can contact your local member of parliament to share your feedback.
Got questions?
If you have more questions about ESL/FSL and how it affects your premium, we’re here to help.
Contact EBM RentCover on 1800 661 662 or visit the Insurance Monitor website.
*While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you need us we are here, contact 1800 661 662 if you have any questions.
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