Alpine Shire Council has written to Victorian Treasurer Jaclyn Symes urging a review of the Emergency Services and Volunteers Fund levy.
The letter, signed by all seven councillors, highlights the shire communities' concerns over the new levy, which is a significant increase over the Fire Services Property Levy it replaced from July 1 this year.
"Whilst we recognise the need to fund vital emergency services, the levy being introduced is not a fair model as it targets farmers and other businesses, including small businesses, disproportionately," the letter reads.
"We have further concerns about adding this extra charge to the increasing cost of living burdens we are all experiencing and which may perversely affect those most in need of support, particularly those renting housing or other premises, as the cost is passed on.
"We also recognise the need for the State of Victoria to recover economically from the funding opportunities provided for local economic stimulus after COVID 19, bushfires, floods and, for Alpine Shire, also landslip and road closures.
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"We thank you for the significant support we have received but seek a more balanced approach for this recovery."
Councillors also expressed their concerns about the burden of collection of the state levy on councils, noting "reputational damage, that the roll out is rushed, not well defined and will cost councils, such as to redesign rates notices".
"Importantly, councils are not currently protected from shortfalls should ratepayers not pay the levy," the letter states.
"This has the potential to reduce the capacity to deliver important local government services, particularly for councils already in a deficit situation and with increasing materials and services costs."
Councillors have urged Treasurer Symes to review the ESVF "to seek a way to more fairly distribute the charges and to enable consultation with local governments and communities around implementation and equity".
They have suggested a "staggered introduction" of the levy to allow time for a review.
"Building on the moratorium for primary producers this year, a 50 per cent reduction for all other ratepayers would alleviate some of our immediate concerns," they wrote, also requesting the ESVF collection method and exemption process be reviewed.
Prepare to pay more as state pushes on with levy
This is the second time in as many months Alpine Shire has written to the Victorian Treasurer to express its concerns about the Emergency Services and Volunteer Fund.
Council wrote to the treasurer at the end of May, re-affirming its concerns and opposition to the ESVF, after the treasurer wrongly told parliament Alpine Shire supported the ESVF.
In the May letter, Mayor Sarah Nicholas said the ESVF’s impact on council and its community would be significant, “removing an estimated additional $2M/annum from the local (Alpine Shire) economy, with a disproportionate impact on farming and commercial properties”.
Rural Councils Victoria, of which Alpine Shire is a member, says the new levy will take $139M annually from rural communities.
Under the ESVF, residential properties face an average increase of 29 per cent and commercial properties an average increase of 63 per cent.
Farmers face an even heavier burden, with primary production land facing a variable rate increase from 28.7 cents per $1000 CIV (captial improved value) to 71.8 cents per $1000 CIV, with an additional fixed charge of $275.
The government has for this year, capped its ESVF levy at the 2024/25 rate for all primary production properties across the state for the coming financial year.
It has also said eligible CFA and VICSES volunteers and life members will be entitled to a rebate on the ESVF liability on their principal place of residence or farm.
The government maintains the ESVF will fund Fire Rescue Victoria (FRV) and Country Fire Authority (CFA), and support the vital work of other emergency services that respond to fires, floods, storms and other emergencies, including: Victoria State Emergency Service (VICSES), Triple Zero Victoria, Emergency Management Victoria, Forest Fire Management Victoria, State Control Centre, and Emergency Recovery Victoria.
The ESVF levy is projected to raise $7 billion over the next four years, which is $2.9 billion more than the previous Fire Services Levy would have raised.
Specifically, it’s expected to collect $1.62 billion in the 2025-26 financial year and $1.8 billion in each of the following three years.
While council’s rates are capped each year, the ESVF levy has no such restriction.
