A revamped Victorian Government emergency services levy is set to rip $140 million from rural communities annually according to a new analysis, prompting urgent calls for the tax to be scaled back.
The new Emergency Services and Volunteer Fund (ESVF) represents a 150 per cent tax hike on some rural landholders, when compared to the Fire Services Levy it is designed to replace. This is despite a complete lack of guarantees regarding how (or where) the new money will be spent, according to Rural Councils Victoria (RCV).
East Gippsland Shire is among the hardest hit regions with an overall increase of 52 per cent under the new levy, with the primary producer change a whopping 117 per cent.
In December 2024, East Gippsland Shire Council first raised concerns about the new levy, saying it would place a significant financial burden on local ratepayers.
At the first council meeting of the year, mayor Cr John White, with unanimous support from councillors, called on the Municipal Association of Victoria, RCV and the Victorian Ratepayers and Residents Association to write to Victorian Treasurer the Hon. Jaclyn Symes MP.
“This new levy is dreadfully unfair. It’s going to smash farm budgets, hurt local businesses and cause job losses in our towns and communities,” RCV chair Cr Rob Amos said.
“Every extra dollar we send to Spring Street is a dollar that can’t be spent in a local business or used to pay an employee.
“Aside from the weather, financial stress is already the leading driver of poor farmer mental health.
“Everybody agrees our emergency services need a boost.
“This new levy will hit Victorian farmers the hardest. How does that make any sense after years of drought and amid a cost-of-living crisis?” Cr Amos said.
“At the very least this new tax burden should be shared equally amongst all Victorian landholders.”
RCV is also concerned by the government’s refusal to guarantee that money raised by the levy will only be spent on local CFA and SES crews, equipment and infrastructure.
RCV has written to Ms Symes, sharing this new analysis and raising its concerns.
Other concerns RCV holds about this new levy include:
– Rural councils will be required to collect this new annual levy through rates notices and then pass the money onto the state.
– There’s nothing to stop the Victorian Government increasing the levy in the future. This contrasts with local councils, which have been subject to a rate cap of 2.38 per cent (average over 10 years). The rate cap is essentially a cap on council funding for local services and infrastructure.
– The government says CFA and SES volunteers will be exempt from the new ESVF levy. But this is only partially true, as the exemption will only apply to one rateable property. Most farmers hold the title for numerous rateable properties and will therefore still be required to pay a significant fee.
“The Emergency Services Volunteer Fund levy isn’t scheduled to come into force until July,” Cr Amos said.
“There’s still time for the Victorian Government to acknowledge the inequities and unforeseen consequences of this new levy and make changes.”
