The Victorian Government's proposed new Emergency Services and Volunteers Fund (ESVF), set to replace the current Fire Services Property Levy (FSPL) on 1 July 2025, is expected to have a significant financial impact on residents and those already burdened by the increasing cost of living.
In Summary
- Council opposes new Emergency Services and Volunteers Fund (ESVF), citing major cost impacts for residents and regional communities.
- Farming sector to be hardest hit, with a proposed rate hike from 28.7 to 83 cents per $1,000 CIV—adding over $5 million in Greater Shepparton alone.
- Council also faces increased administrative costs as the designated collection agency under the new levy system.
- Council calls for the Victorian Government to scrap the proposal and consult communities on fairer funding alternatives.
Greater Shepparton City Council Mayor, Councillor Shane Sali, said Council is extremely concerned about the proposal and its impact, particularly on the large farming and agricultural sector within the region.
The new tax will see a sizeable increase over the existing FSPL, taking millions of dollars more out of regional cities. The primary production variable rate for the new ESVF will rise from 28.7 cents per $1,000 CIV to a staggering 83 cents. In Greater Shepparton alone, this contributes to an increase of more than $5 million in what is already collected through the FSPL.
Cr Sali said Greater Shepparton is known for being the food bowl of Australia, however he said this was another blow which could significantly impact the hand of those who feed the nation.
"Our residents are already struggling with cost-of-living pressures and this is another blow to their back pocket. We cannot expect our ratepayers to bear the cost of this new Victorian Government proposal," he said.
"The Victorian Government's Emergency Services and Volunteers Fund tax would have the biggest impact on farmers, as they will see the largest increase in what is collected through the levy.
"Our community is already facing significant challenges, including the prospect of mandatory Federal Government water buybacks and the increased input costs for agriculture, and this state tax would place further stress on our region and its producers."
The proposed ESVF designates Councils as the formal collection agency for the fund, which would also bring an increased cost for local government, both as landowners but also as administrators. The change will see Council incur increased costs to alter rates notices and implement the system changes needed to administer the more complex program.
"We strongly urge the Victorian Government to reconsider the impact this proposal would have on ratepayers and Councils during already challenging economic times," Cr Sali said.
"Councils should not be administratively, financially or reputationally burdened by the Victorian Government's ESVF levy on ratepayers."
Greater Shepparton City Council has been actively lobbying the Victorian Government to scrap the tax by immediately ceasing the introduction of the ESFV. To date, there has been no consultation with community or Councils in terms of the impact of the fund on ratepayers or Councils who are expected to administer the fund.
"The Victorian Government needs to find a fairer way of funding Victorian Emergency Services, rather than via unplanned tax changes," Cr Sali said.
