Greater Shepparton City Council has continued to express its strong objection and disappointment to the newly imposed Victorian Government Emergency Services and Volunteers Fund (ESVF), which shifts a state taxation burden onto local government operations.
In Summary
- Council has formally restated its strong objection to the Victorian Government's new Emergency Services and Volunteers Fund (ESVF), which shifts state taxation collection onto local governments.
- Legal advice confirms councils are obligated to collect the ESVF and include it within annual rates notices, creating administrative and financial pressures.
- The new levy will see Greater Shepparton contribute an additional $4.7 million, with sharp increases in the primary production rate disproportionately impacting regional and rural communities.
- Despite its legal obligations, Council maintains that administering a state tax is an unfair burden on local government and risks negatively affecting local services and community trust.
At its May Council Meeting on Tuesday, Councillor Rod Schubert tabled an urgent business item which was unanimously supported by all Councillors, on the back of legal advice received. The advice, which raised further concerns, confirmed that councils are legally required to collect the ESVF. It was also confirmed that councils cannot issue a separate rate notice for the ESVF, it must be included in the annual valuation rate and charge notice, and councils must proportionally allocate payments to both council rates and charges, and the ESVF levy, if a ratepayer underpays.
This requirement is expected to significantly impact Council's bottom line and the services and facilities it provides to the community, potentially impacting the relationship between Council and its community.
At the Council Meeting, Council acknowledged its legal obligation to comply with the ESVF however it strongly objected to the imposition of this responsibility.
"Local government should not be the ones to administer a state tax. The Victorian Government have shifted the responsibility and burden onto councils, meaning they are responsible for administering the tax, collecting the money and passing it back to the state – a costly and time-consuming exercise which could have significant consequences for Council," Mayor, Councillor Shane Sali said.
Cr Sali said local government were increasingly funding services that should be a state responsibility, including kindergarten, libraries, school crossings, maternal and child health.
"This new Victorian Government Emergency Services and Volunteers Fund will see a further $4.7 million ripped out of Greater Shepparton, on top of what we are already paying through the current Fire Services Levy," he said.
"Regional cities like Greater Shepparton continue to be hit with increasing taxes during a time when many are already feeling the hit of the increasing cost of living. Greater Shepparton is the Food Bowl of Australia. Our farmers feed the nation and drive the regional economy, and to thank us for that the State Government has handed our region a bill for an additional $4.7 million."
Under the new ESVF, the primary production variable rate will rise sharply from 28.7 cents to 71.8 cents per $1,000 of Capital Improved Value (CIV), a shift that disproportionately affects regional and rural areas. The ESVF will come into effect from 1 July 2025, with Greater Shepparton residents to see the increase listed on their rates notice distributed in August.
