The Victorian Government has increased a property tax to fund emergency services, following weeks of protests.
The Government said the changes will provide “hardworking emergency services the funding and equipment they need.”
Regional fire services and farmers argue it will deepen financial pressures on rural communities.
Here’s what you need to know.
Fire levy
In Victoria, property owners currently pay an annual tax called the Fire Services Property Levy (FSPL).
It’s collected by local councils and funds the state’s fire services, including the Country Fire Authority (CFA).
The tax was introduced in 2013 following a recommendation from a 2010 Royal Commission into the deadly Black Saturday bushfires.
It includes a fixed charge and a variable rate depending on the type of property.
New levy
Last year, the Government announced the tax would be replaced with a new levy designed to fund a broader range of emergency services.
Under a bill passed last week, the new tax will be significantly higher than the old one, and will go to the new Emergency Services and Volunteers Fund (ESVF).
The ESVF will extend funding to services including the State Emergency Service (SES), and Emergency Recovery Victoria.
In this financial year, the fixed rate of the FSPL was $132 for residential properties, and $267 for all other types, including farms.
For residential properties, the variable rate was 8.7 cents per $1,000 of the value of the land and whatever is built on it, e.g. houses.
For farms, the variable rate was 28.7 cents per $1,000 of the value of the land and whatever is built on it.
The new variable rate for residential properties will be 17.3 cents; for farms it will be 71.8 cents.
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The Government‘s bill includes a requirement that the levy fund 95% of the SES and the CFA’s budget for the year.
Emergency service volunteers who have served for at least 12 months will be eligible for rebates.
Concessions on the new levy will be applied to pensioners, veterans, and people who only own one farm.
Protests
Hundreds of rural fire services volunteers, local councils, and residents have hosted protests at State Parliament against the bill.
Many fear the rate increase, alongside other council fees, will exacerbate the cost-of-living crisis for people in the regions.
Much of the state’s west is in drought conditions.
The night of the bill’s passage, members of several CFA brigades protested by leaving work.
CFA Acting Chief Officer Garry Cook said the organisation respected its members’ right to “engage in matters relevant to their local communities,” and had ensured alternative arrangements while they were offline.
Multiple local councils have also expressed disapproval of the bill.
Swan Hill Mayor Stuart King said it “will unfairly increase the financial burden on rural and regional households and primary producers.”
“It is important for our community to understand that this is not a council charge,” King said.
Government response
The Government has defended its new bill, saying it addresses the growing needs of a state that “is one of the most fire-prone areas in the world”.
Victorian Treasurer Jaclyn Symes said the new levy ensures the state is equipped to “face natural disasters, which are happening more often and becoming more destructive.”
Minister for Emergency Services Vicki Ward said the new funding model provides emergency service teams “the modern equipment they need to help keep communities safe.”
