General News
3 April, 2025
RCV insights on new levy
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 represents a 150 per cent tax hike on some rural landholders, when compared to the Fire Services Levy it is designed to replace.
Rural Councils Victoria (RCV) expressed its concerns over a lack of guarantees regarding how, or where, the new money from the levy will be spent.
“This new levy is dreadfully unfair,” RCV chair councillor Rob Amos said.
“It’s going to smash farm budgets, hurt local businesses and cause job losses in our towns and communities.
“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.”
According to a 2023 national farmer wellbeing report, aside from the weather, financial stress is already the leading cause of poor farmer mental health.
“Everybody agrees our emergency services need a boost,” Cr Amos said.
“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?
“At the very least this new tax burden should be shared equally amongst all Victorian landholders.”
In an impact analysis completed by RCV, it is stated there will be a 117 per cent cost increase in the Moyne area, and a 95 per cent increase in the Corangamite area, when the new levy is compared to the previous.
RCV is also concerned by the Victorian Government’s refusal to guarantee that money raised by the levy will only be spent on local Country Fire Authority (CFA) and State Emergency Service (SES) crews, equipment and infrastructure.
RCV has written to the Victorian Treasurer, Jaclyn Symes, sharing this new analysis and raising its concerns.
The statement said RCV is concerned regarding the way rural councils will be required to collect this new annual levy through rates notices and then pass the money onto the state.
RCV stated forcing local governments to collect a Victorian Government tax is unfair and the State Revenue Office exists for this exact purpose, and should be the vehicle for collection.
Other concerns included clarity over whether the levy could be increased by the Victorian Council in the future, as in contrast, local councils are subjected to a rate cap, and while the Victorian Government said CFA and SES volunteers would be exempt from the new levy, this would only apply to one rateable property.
RCV expressed in the statement most farmers do hold the title for numerous rateable properties, therefore would still be required to pay significant fees.
“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.”