Mitchell Shire Council has raised concerns about the Victoria Government's new Emergency Services and Volunteer Levy, which is set to significantly increase the financial burden on ratepayers in Mitchell Shire.
While Council acknowledges the need for increased funding for emergency services, it strongly believes the current levy will result in unfair outcomes for ratepayers and force Local Government to have a greater responsibility as a tax collection arm of the Victorian Government.
The cost burden for Mitchell Shire ratepayers, which they will see on their rates notice, is significant. The Fire Services Levy generated approximately $7.08 million from Mitchell Shire ratepayers in the 2024/25 financial year, providing funds to the State Government for emergency services.
Under the new Emergency Services and Volunteer Levy, the cost to Mitchell Shire ratepayers is expected to increase to approximately $10 million.
This increase will be felt across all sectors (subject to capital improved value):
- Residential ratepayers will face an estimated 35% increase.
- Commercial ratepayers will see an estimated 70% increase.
- However, it is the primary producers, including farmers, who will be hardest hit, with an estimated 150% increase in the levy.
Council supports the Municipal Association of Victoria's advocacy on this levy and has serious concerns about the impact these increases will have on rural and farming communities, who are already struggling with the challenges of drought, cost of living, and the broader economic pressures faced by the agricultural sector.
Mitchell Shire Mayor Councillor John Dougall said Council is committed to working collaboratively with the State Government to find a more sustainable and equitable approach to funding emergency services.
"The reality is this levy is an unfair financial burden on our communities, particularly our farmers and rural residents. It's putting an added strain on people already struggling in tough economic times," he said.
"This increased levy must be re-examined immediately. Local government should not be asked to do more work collecting and administering taxes on behalf of the Victorian Government.
"This is an example of a system that fails to understand the unique challenges of our region. We will continue to push the State Government to find fairer and more equitable solutions that protect our communities from policies that place unfair and disproportionate pressure on them."
