April 4th, 2025Rural communities to be hit hardest by ‘unfair’ 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 from rural councils for the tax to be scaled back.
The new Emergency Services and Volunteer Fund represents a 150% tax hike on some rural landholders, when compared to the Fire Services Levy it is designed to replace, according to Rural Councils Victoria (RCV).
Hepburn Shire Council CEO Bradley Thomas says the Hepburn Shire Council supports the analysis and recommendations put forward by Rural Councils Victoria.
“In the Hepburn Shire, the projected increase is expected to raise from $3.21 million to $5.42 million,” Mr Thomas says.
“Council has written to the Victorian Treasurer expressing concerns about the new tax, its potential impact on rural communities, and the unfair expectation that councils should act as debt collectors for the State Government.”
“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 has warned in recent days.
“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 a recognised contributor to poor mental health among farmers.
“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.”
| Land type | Levy increase | Example |
|---|---|---|
| Primary producer | +154% | $3,800 to $10,600 |
| Residential (rural) | +31% | $170 to $210 |
| All rural (average) | +90% |
The RCV says it’s also concerned by the state government’s refusal to guarantee that money raised by the levy will only be spent on local CFA and SES crews, equipment and infrastructure.
Rural Councils Victoria has written to the Victorian Treasurer, Jaclyn 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. However, forcing local governments to collect a Victorian Government tax is unfair. The State Revenue Office exists for this exact purpose and should be the vehicle for collection.
- 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 cape of 2.38% (average over 10 years). The rate cap is essentially a cap on council funding for local services and infrastructure. Either way, the new levy should be capped also, or subject only to scheduled increases.
- The Victorian 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.”
Story based on a Rural Councils Victoria (RCV) media release & a Hepburn Shire Council media statement. Image: File
