With strong opposition from local farmers, Councilors, MP's, the CFA and the Victorian Farmers Federation (VFF) from Gippsland and all corners of Victoria, the State Government’s proposed Emergency Services and Volunteer Fund is being hotly debated in Parliament.
A rally was held on the steps of Parliament opposing the levy on Tuesday, and attended by many including, The Nationals Member for Gippsland South Danny O’Brien MP, who spoke at the rally alongside VFF President Brett Hosking.
“The sheer reality is that this levy will create a crippling financial burden to farmers,” said VFF President Brett Hosking. “This decision shows a clear disconnect between our state government and the day-to-day realities faced by those on the land.”
“It almost feels like the worse this drought gets, the harder the government pushes to take more from farmers,” he added.
The VFF is gravely concerned about the impact this levy will have on farmers, who are already under significant pressure from drought conditions and broader economic challenges.
While the government has announced a 16 per cent reduction in the levy for farmers and a temporary pause for those in drought-declared areas, these concessions do little to ease the broader burden that will be felt across regional and rural Victoria, if this levy is passed.
What is the Fire Services Property Levy and what’s changing?
THE FIRE Services Property Levy (FSPL) is an annual charge levied on property owners in Victoria to fund the state's fire and emergency services.
Revenue raised by the FSPL funds 87.5 % of Fire Rescue Victoria (FRV) and 77.5 % of the Country Fire Authority’s (CFA) annual budget.
Property owners pay the levy via their council rates.
On Friday 13 December 2024, the Victorian Government announced the FSPL will be replaced with the new Emergency Services and Volunteers Fund (ESVF) from 1 July 2025.
This levy will fund additional emergency services such as VICSES, Triple Zero, the State Control Centre, Forest Fire Management Victoria and Emergency Recovery Victoria, as well as the CFA and FRV.
Active CFA and SES volunteers and life members won’t have to pay the ESVF on their primary place of residence (such as a house or farm) but will have to pay it for any other properties they own.
Pensioners, veterans and single farm enterprises will continue to receive concessions.
Like the FSPL, the ESVF will be calculated based on a fixed charge that varies by property type, and a variable charge based on property value.
Levy = fixed charge + variable charge – concession (if eligible).
In 2024-25 the residential fixed charge was $132 and the non-residential fixed charge was $267; this will increase by $4 and $9 respectively for the 2025/26 financial year.
The variable rate component of this levy is what is being opposed, as the State Government will increase variable rates to raise additional revenue to fund all the services being covered by the ESVF.
The variable charge is based on a property’s capital improved value (CIV) and a variable rate (cents per $’000 of CIV) depending on its property classification.
Variable charge = variable rate × capital improved value (CIV).
The variable rate will increase under new legislation, from 8.7% (cents per $1000 CIV) up to 17.3% for a principal place of residence (PPR) and non-PPR residential properties.
The variable rate for primary production properties will jump from 28.7% to a whopping 83%, commercial from 66.4% to 133% and industrial from 81.1% to 133%. (This does not include the 16% reduction for farmers).