NSW councils have welcomed a decision to reverse a new charge on councils and ratepayers.

The NSW Government has announced it will cover an initial increase of almost $14 million in the Emergency Services Levy paid by councils, rather than pass it on to local governments.

Councils currently contribute 11.7 per cent of the Emergency Services budget in NSW, with the cost embedded in council rates and further costs recovered through insurance premiums.

Council contributions were unexpectedly sent soaring to cover the cost of extending workers’ compensation coverage for volunteer and career firefighters diagnosed with one of 12 specific work-related cancers.

The first councils knew they would be asked to cover any increase was when they opened a bill from Revenue NSW and saw levy spikes of up to $220,000.

Local Government NSW President Linda Scott welcomed the announcement that the state government would help out.

“Local government strongly supports fairer workers’ compensation for paid and volunteer fire fighters,” Cr Scott said.

“In many areas, especially in regional NSW, mayors, councillors and council staff are the core volunteers that make up our state’s rural fire brigades.

“Local governments welcome the NSW Government’s decision to listen to us, reversing its decision to significantly increase the Emergency Services Levy cost to NSW councils this year.

“I welcome the Deputy Premier and Local Government Minister’s recognition that this additional, unexpected cost to councils, particularly those in rural and regional areas affected by the drought, would cost communities.”