Some to pay more under levy: NSW treasurer

NSW Treasurer Dominic Perrottet admits some property owners will pay more under the government's new fire and emergency services levy.

The changes - to come into effect on July 1 - are designed to make landowners share the burden of funding fire and emergency services by replacing the previous system of taxing insurance policies.

Property owners will instead pay a new "tax" alongside council rates based on the value of their land.

Mr Perrottet on Thursday conceded some homeowners, particularly in Sydney's wealthier suburbs, could pay more than the $185 average the government previously touted.

"There are people who have high-value properties who will no doubt be paying more," he told 2GB radio.

"I'm not going to gild the lily on that at all."

Discounts will be available for pensioners and veterans and there'll be a hardship policy for those who need it, the treasurer said.

"If changes need to be made at some stage we will make them."

The state government estimates insurance premiums will fall by an average $233 a year because of the changes meaning the average property owner could save about $40.

Revenue raised will go to the State Emergency Service, Rural Fire Service and Fire and Rescue NSW.