Mandatory State Government Charge to be Collected by Councils
In December 2024, the Victorian Government announced that the Fire Services Property Levy (FSPL) would be replaced by the Emergency Services and Volunteers Fund (ESVF), effective from 1 July 2025.
The fees are set by the State Government, collected by Councils, and paid back to the State Government including any interest accumulated.
Indicative figures on the variable rate suggest that the levy may be more than double the FSPL for some ratepayers. For farming properties in Hindmarsh, based on information provided, the average increase will be approximately 164%. The average increase for commercial properties will be approximately 35% and residential properties average increase will be approximately 16%.
Hindmarsh Shire Council Mayor, Cr Ron Ismay said “Council is very disappointed that the State Government has introduced the new Fund without consultation while capping Council at 3% rates increase for 2025/2026. For comparison, the 3% rates increase to Hindmarsh is approximately $250,000 (which will cover our insurance premium increases and not a lot more), while the ESVF will generate for the state government between $2m to $3m additional from Hindmarsh alone. Multiply these figures by 38 Rural councils across the state and the sum becomes $76-118 million!!!”
Cr Ismay added, “Council is not saying that funding the emergency services isn’t important, but the way it has been introduced has been appalling, and the burden of the increase is predominately on our rural communities meaning that money is taken away from our community and not spent locally”.
Cr Ismay continued “Active emergency services volunteers and life members may be eligible for a rebate for the ESVF on their primary place of residence, IF, the property is registered in their personal name. Council has been advised that the rebate will likely be administered by the State Government”.
From an operational perspective, Council is seeking assurance from the State Government that the administrative costs for collecting this levy on their behalf are considered. The work involved in collecting and administering this levy will divert Council resources away from things that matter to our community – services, road maintenance and projects that form the basis of our Council Plan.
Further information is available on the Department of Treasury and Finance website: https://www.dtf.vic.gov.au/emergency-services-and-volunteers-fund
For more information, please contact Monica Revell, Chief Executive Officer on 03 5391 4444 or email mrevell@hindmarsh.vic.gov.au.