Premier Jacinta Allan's new tax riles regional Victorian councils

Australia Broadcast Center

20-05-2025

Victoria's 79 councils have banded together to formally oppose Premier Jacinta Allan's new emergency services tax.
The Municipal Association of Victoria (MAV) has pushed back against the controversial Emergency Services and Volunteers Fund (ESVF) in the face of ongoing protests.
It has passed a number of resolutions designed to return the responsibility of collecting the levy to the state government.
"Basically, we don't think it's a good idea at a local government level to be putting this tax burden on our ratepayers," MAV president Jennifer Anderson said.
The resolutions called for adequate administrative funding for local governments to manage the cost of administering the levy; transferring levy collecting to the state, ensuring an equitable funding model; and ensuring equitable fund distribution.
CFA members protest on the steps of the Victorian Parliament on Tuesday. ( ABC News: Danielle Bonica )
Cr Anderson said councils did not have the resources to collect the levy or deal with those who refused to pay.
"Given it has passed [in parliament], we really feel it should be something that the State Revenue Office should be dealing with, not local councils," Cr Anderson said.
Cr Anderson said the amount of financial support given to local governments by the state government had declined in recent years, as evidenced in a recent parliamentary inquiry.
"It's well and truly out there that over time some of the funding sources that were available to councils are either no longer available, or have reduced in time," Cr Anderson said.
"Councils like to step in and provide services where there are gaps and there isn't a private provider, particularly in your smaller rural communities."
CFA members came from across Victoria to join Tuesday's protest. ( ABC News: Danielle Bonica )
Statewide issue
Thousands of CFA volunteers and farmers gathered in Melbourne and across the state on Tuesday to protest the levy.
Ben Blain spoke out against the levy. ( Supplied: Warrnambool City Council )
Warrnambool Mayor Ben Blain, who has been a CFA volunteer for nearly 20 years, told a rally in Warrnambool volunteers who took time away from their families, jobs, and businesses to protect the community should not be punished.
"You're putting your life at risk to protect others in your community," he said.
"Now they're trying to make you pay for the privilege to do it.
"It's just wrong. It [the CFA] is something that should be cherished."
Cr Blain said the levy would take close to $20 million out of the Moyne, Corangamite and Warrnambool local government areas.
"We [councils] don't want to be the tax collectors for the state government," Cr Blain said.
"When the vote went through on Thursday, 280 brigades went offline in protest — 50 of them were here in region 5.
"I think that's sending a really clear message, we're not happy.
"We want to see something that is fair and equitable because we're the country, we're the big part of Victoria … we're the heart and soul."
Brad Battin says his party is committed to "scrapping the tax" if elected next year. ( ABC News: Joseph Dunstan )
On Tuesday the Victorian Opposition promised to scrap the ESVF if it won the next state election.
"Under our plan, the Liberals and Nationals will repeal the ESVF and return to the simpler, fairer Fire Services Property Levy — a model that funds fire services transparently, without punishing homeowners, renters and farmers," Liberal leader Brad Battin said.
Premier Jacinta Allan told the Victorian parliament the ESVF needed to be funded to provide adequate resourcing to emergency services.
"You cannot ignore the fact that more and more is being asked of our emergency services, our state emergency services," she said.
"You cannot commit to ripping away … hundreds of millions of dollars from our emergency services without finding it from somewhere else."
Spring Street was swarming with CFA volunteers on Tuesday morning. ( ABC News. )
Protesters from across Victoria converge on Spring Street in Melbourne on Tuesday. (ABC News) CFA volunteers rally around the famous clocktower in Camperdown in south-west Victoria. ( Supplied: Chris Rodda )
CFA residents in Camperdown in south-west Victoria rally around the town's clock tower. (Supplied: Chris Rodda) About 50 protesters gathered outside the Morwell office of Labor MP Harriet Shing.
About 50 protesters gather outside the Morwell office of Labor MP Harriet Shing. (ABC News: Rachael Lucas) Volunteers in Warrnambool rallied at the town's greyhound racing circuit. ( ABC News: Olivia Sanders )
In Warrnambool, volunteers rally at the town's greyhound racing circuit. (ABC News: Olivia Sanders)
How it works
The old tax, known as the Fire Services Levy, was used exclusively to fund the Country Fire Authority and Fire Services Victoria.
The new, expanded tax will continue to fund the CFA and FRV, along with the State Emergency Service, Triple Zero Victoria and six other emergency-related government agencies.
For farmers, the new tax will increase by 150 per cent to 71.8 cents for every $1,000 of property value, while for home owners it will double to 17. 3 cents.
Rebates are available to all SES and CFA volunteers, but only on their principal place of residence.
Alternatively, farmers who volunteer can access a rebate on their farm, but this is capped at $5 million, meaning a maximum rebate of $3,865.
There is a drought rebate available for farmers in local government areas receiving drought support — these farmers will be taxed at the same rate as under the Fire Services Levy.
The state government will raise $1.6 billion from the ESVF next financial year, up $600 million on the previous year.
It has budgeted $26 million for rebates in 2025–26.