Council
State council body demands change to new property tax

VICTORIA's peak council advocacy body has expressed its concern over steep rises to the fire services levy for rural residents when it is renamed to a volunteers fund from 1 July.

The Fire Services Property Levy will be renamed the Emergency Services Volunteers Fund (ESVF) and the tax will double from 8.7 cents to 17.3 cents per $1000 capital improved value [CIV].

The Municipal Association of Victoria (MAV) is also calling on the state government to fund the administration of the new Emergency Services Volunteers Fund as councils cannot wear the cost.

MAV president Jennifer Anderson told the Wangaratta Chronicle about the impact of the ESVF on rural ratepayers.

"Many councils across Victoria have already raised council motions about their council collecting this levy on behalf of the state government; and concerns about the cost impact on residents," she said.

"The MAV is also concerned about the cost shock likely to impact rural residents, with many rural councils modelling significant increases to ratepayers on agricultural land classified for primary production."

Cr Anderson said the local government sector is supportive of increased resources to the emergency services sector in Victoria – councils across Victoria already generously support many VICSES units and CFA brigades in local communities through contributions, shared or reduced costs for their facilities and peppercorn leases.

"However, the cost burden should not be on councils to collect or administer this state levy on behalf of the government," Cr Anderson said.

"While councils have been collecting the Fire Services Levy for the state government through rates notices for more than a decade, this new, expanded Emergency Services and Volunteer Fund set to commence on 1 July 2025 is more complicated for councils to implement through rates notices in a short timeframe.

"Councils across the state have indicated that they are not able to reliably implement these proposed changes to the expanded state levy on 1 July 2025; and require funding from the state government to ensure that every local government is equipped with the IT, communication and human resources required to implement this expanded state levy."

Cr Anderson said the MAV will continue to constructively work with the state government to assist in coming to an appropriate solution for the implementation of the new Emergency Services and Volunteer Fund.

"However, we want to make it very clear that this is a state levy, and the state government needs to communicate the benefits of this expanded emergency services levy to rate payers across the state,” she said.

Rural City of Wangaratta Mayor Irene Grant and other councillors last month raised the issue with CEO Brendan McGrath.

Cr Grant also discussed potential action with other council mayors at the Regional Cities Victoria (RCV) gathering.