Rate rises and new emergency levy hit struggle street

PEOPLE are hurting. Between the rises in energy costs, housing, low wage increases and all the rest, there’s a real squeeze on the household budget.

Which is why, when shire rate notices started arriving in Bass Coast last week, and the same is coming for South Gippsland residents this week, the was a collective pause before opening the envelope or clicking the e-notice box.

Farmers not so much. Back in May, when thousands rallied on the steps of State Parliament, the Victorian government announced a temporary backdown on its controversial Emergency Services and Volunteers Fund (ESVF) levy.

The levy has been capped at the 2024/25 rate for all primary production properties across the state for the coming financial year, but an increase in the levy, from several hundred dollars to several thousand dollars, is coming.

For now, it’s the homeowners and business owners who are getting slugged. Here’s some examples:

• Shop in Wonthaggi (CIV $410,000): This year’s rates $2511.26, last year rates $2104.88. General rate: $947.96 ($875.39). Garbage rate: $743 ($690.25). Fire/emergency levy: $820.30 ($539.24).
• House in Wonthaggi (CIV $460,000): This year’s rates $1897.14 ($1751.59). General rate: $1063.56 ($1003.49). Garbage rate: $618 ($575.21). Fire/emergency levy: $215.58 ($172.89).
• Vacant block in San Remo: Total rates: $3231.02. Vacant land rate: $2947.97. Fire/emergency levy: $283.05.

President of the Victorian Farmers Federation Bass Coast branch, Bill Cleeland, told the Sentinel-Times this week that his rates notice had arrived, not showing much on an increase over last year. But he’s aware the day of reckoning is coming.

“Farms aren’t selling, so we’ve seen no increase in values, a settling back if anything. So, not much of an increase (in rates) this time around, and the emergency levy has been capped,” he said.

“But rate increases for farms have been running at much higher than for residential and commercial which is why we believe the fairest thing would be reducing the farm rate differential to 60% (compared to the 80% in place now).”

Mr Cleeland has already turned his attention to the promised review of Council’s rating strategy and differential rates this year, for which a budget allocation of $35,000 has been allocated.

“Hopefully, they’ll have it in place for next year, before the new Emergency Services and Volunteers Levy hits.”

Notwithstanding the fact that the ESVF levy hasn’t hit farmers this year, it has hit business owners and homeowners, with the issue associated with the levy to be aired at a public meeting in the Wonthaggi Workmen’s Club on Tuesday, August 19 at 7pm.

Bev McArthur, the Shadow Minister for Local Government, will be speaking at the event, as well as Nathan Murphy from the United Firefighters Union. The Minister for Consumer Affairs, Minister for Local Government, the Hon Nick Staikos has also be invited to attend.

Propaganda included

Your rates bill also includes a notice from the State Revenue Office explaining the Victorian Government’s new Emergency Services and Volunteer Fund tax, to be collected by your local council.

Among other things it explains that the owners of building blocks, likely struggling to take the next step and build a house, will be slugged even more when next year’s rates notices come out.

Instead of paying the base amount of $136, plus a higher Capital Improved Value (CIV) rate than homeowners, they’ll also have to pay a higher base rate of $275 next year.

Here’s what the SRO says has changed:

“From 1 July 2025, the emergency services and volunteers fund will appear on your council rates notice. It replaces the fire services property levy and will now support the vital services that respond to fires, floods, storms and other emergencies. Vacant land will also now be classified according to its intended land use. From 1 July 2026, a new property classification will be introduced for residential principal places of residence (PPR), and non-PPR residential properties will be charged the non-residential fixed rate.”

Click for SRO information sheet HERE.

Here are some examples from the South Gippsland Shire

• House in Leongatha – Capital Improved Value $800,000

• Farm – Capital Improved Value $5,000,000

• Farm – Capital Improved Value $5,000,000 with estimated ESVF increase in 26/27

• Shop in Leongatha – Capital Improved Value $950,000