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East Gippsland Council criticises Victorian government's emergency services levy, citing burden on ratepayers and administration

East Gippsland Shire Council criticizes the Victorian government's Emergency Services Levy, citing its significant cost burden on ratepayers, lack of consultation, and added administrative challenges for local government.

By news@gippsland - 31st December 2024 - Back to News

The Victorian government's new Emergency Services Levy will result in a significant cost burden on local ratepayers and East Gippsland Shire Council. Replacing the Fire Services Property Levy (FSPL) with the larger Emergency Services and Volunteers Fund (ESVF), effective from 1 July 2025, has raised significant concern across the community and has come as a surprise to council.

The new Emergency Services Levy, replacing the Fire Services Property Levy, increases rates significantly, raising $2.1 billion more for the state

Fire levy increase

Mayor Cr John White said there was no consultation with local government prior to the recent announcement by the State, yet it will be Council who will be asked to collect the tax. "This is not a local government charge. It is the State using us to collect revenue without considering the implications on Council and our ratepayers."

"It is unbelievable that in the middle of a cost-of-living crisis, where local government has had its rates capped at below inflation, the State can impose a new charge that will be more than double what some people currently pay through the current Fire Services Levy," John said.

The new levy will be collected in the same way as the Fire Services Levy - through Council rates notices. The rate (cents per $1,000 of capital improved value) will be lifted from 8.7 per cent to 17.3 per cent, meaning the State will raise an extra $2.1 billion more than the old Fire Services Levy.

Unfair levy impact

John said, "The impost seems larger in areas with significant rural areas such as East Gippsland. Our modelling indicates that owners of residential properties with a capital improved value (CIV) of $750,000 will pay 99% ($64.25) more. For industrial properties with a $1 million CIV it will be 34% ($519) more, for commercial 100% ($666), and for primary producers 189% ($543) more.

Multiply that out for properties with higher CIV's and it is a cost no one will have budgeted for. Most will find it difficult to afford, and it will take millions out of our local economy. "This Government grab is significantly out of step with the advice we received from the State on Christmas Eve that Council rates will be capped at 3% next year."

The new levy has not considered the significant extra administration burden on Council. There is also no clarity on how proposed exemptions for emergency services volunteers would be administered. The Mayor said Council will continue to seek answers and was also looking for support from the local government sector on the issue, including Rural Councils Victoria and the Municipal Association of Victoria, both of whom were contacted by Council last week.

Pictures from East Gippsland Shire Council website.

Source: http://gippsland.com/

Published by: news@gippsland.com