New levy needs to be urgently reviewed
Published on 23 April 2025
Glenelg Shire Council has welcomed the pause button being pushed on the Victorian Government’s proposed Emergency Services Volunteer Fund Levy (ESVF).
The introduction of the ESVF would hit hard those already experiencing hardship in our rural communities.
Mayor Karen Stephens said many residents were already grappling with cost-of-living pressures, the financial and physical effects of storm and fire events and drought conditions.
“The financial effect of introducing the ESVF on our community will have ripple effects and impact local economies, service provision and community wellbeing,” Cr Stephens said.
“Council’s analysis indicates the ESVF has the potential to strip out $7.7 million from our community, with very little return back to support emergency services.”
The proposed levy, which replaces the Fire Service Property Levy (FSPL), would see Glenelg Shire ratepayers pay $3.3 million, or 86 per cent, more than in 2024-25 under the FSPL.
Further the FSPL itself increased 33 per cent last year and Council analysis indicates some ratepayers would see their bill doubled this year.
“This is inequitable and unjust and undoubtedly this tax will result in job losses in our community,” Cr Stephens said.
“The lack of meaningful consultation prior to the levy’s announcement has further eroded confidence in the policy.
“Communities were blindsided by the decision, and if they pursue its introduction there is an urgent need for the State Government to communicate transparently about the levy’s purpose and allocation.
“Ratepayers must understand that councils are not the beneficiaries of these funds. The levy is effectively a state-imposed tax disguised as a local charge.
“Councils are required to collect it on behalf of the State Government, placing us in an untenable position.
“This approach undermines the principle of fairness, as councils have the administrative burden while ratepayers are unfairly targeted, especially in rural areas where economic challenges are acute.
“The policy demonstrates a striking inconsistency when comparing the significant levy increase, which will exceed 100 per cent for some ratepayers, with only a 3 per cent increase on council rate permitted.
“This imbalance places an undue burden on rural councils, with a lack of alternative revenue streams to offset the financial strain, amplifying the inequities faced by smaller communities.”
Council made its concerns known to Victorian Premier Jacinta Allen and the Treasurer Jaclyn Symes in a letter in February, following a Council resolution at its January Meeting.
Other rural and regional Councils throughout the state have also voiced their concerns along with primary producer and other community groups.
Debate on the Fire Services Levy Bill, the enabling legislation for the ESVF, will now not take place until after the Victorian Parliament resumes on 30 April.
However, Council is calling for a rethink, including reassessing the funding model to ensure it does not disproportionately burden rural communities and shifting revenue collection responsibilities back to the State Government.
“We are requesting an urgent review of this levy,” Cr Stephens said.
“We also welcome the opportunity to collaborate on a more sustainable and equitable approach to funding emergency services.
“The current approach undermines trust in local government, as councils are unfairly positioned as enforcers of a state-imposed tax, with no ability to influence its parameters or mitigate its impact.
“This is not sustainable and is damaging to the relationship between government and the communities we serve.”