Open Letter to the Ararat Rural City Community Regarding the Emergency Services and Volunteers Fund

Dear Ararat Rural City Community,

We're reaching out to you with an important message regarding the new Emergency Services and Volunteers Fund (ESVF), and to clearly share Council's position on a matter we know will impact our entire community. We are deeply concerned about the State Government’s decision to continue to implement this new tax, as we know many in our community are. We acknowledge the unfair impacts that its introduction will have on all ratepayers, including our farmers, local business, those living on fixed incomes, renters, and families. Everyone will be affected by this.

Our local businesses will suffer as families, already struggling with the rising cost of living, reduce their spending. Our local clubs and community groups will also feel the impact. They'll face reduced funding from sponsorships and donations, and fewer people may have the time to volunteer. The ripple effect of this new tax on our local economy will be profound. It will drain millions of dollars from our community, with no guarantee that these funds will be reinvested back into rural areas.

What we’ve been doing

At our Council Meeting on 25 February 2025, Council unanimously passed a motion condemning the ESVF.
We took this strong stance because we firmly believe it will place an unfair burden on our primary producers and impose an excessively steep increase on all ratepayers across our community. We’ve maintained a consistent media campaign to drive awareness of this unfair levy beyond our region, including engaging with metropolitan audiences.

Councillors have also taken significant public action. Our Mayor, Cr Jo Armstrong, was among several Councillors who attended a Melbourne rally, and spoke about the ESVF's detrimental impacts on rural communities, as well as joining other regional Mayors at public events to amplify shared concerns. We’ve lobbied State Government Legislative Council members through numerous letters, strongly advocating against this new tax.

What we know

The Emergency Services and Volunteers Fund (ESVF) will come into effect from 1 July 2025, and you'll see it as a charge on your upcoming Council Rates Notice. It’s important that the community understands that this isn't a Council tax, we are legally obligated to collect it on behalf of the State Government. We want to make it clear that while Council is legally obligated to collect the ESVF on behalf of the State Government, we have consistently and strongly advocated against its introduction due to our deep concerns about its impact on our community and we will continue to do so.

Following an announcement by the State Government last month, the variable rate for primary production properties will now be frozen for the next twelve months at the 2024-25 financial year amount (28.7 cents per $1,000 CIV). This rate will be automatically applied to rates notices for primary production properties. This only offers a temporary reprieve for our farmers and does not ease the pressure on all other ratepayers, many of whom are feeling the pinch during these challenging economic times. The ESVF will impose a 99% variable rate increase on residential properties, a 100% increase for commercial ratepayers, and a 64% increase for industrial properties.

Eligible CFA and VICSES volunteers and life members will be entitled to a rebate on the ESVF on their principal place of residence or farm, which will be administered by the Department of Government Services. We encourage all CFA and VICSES volunteers to explore this. More information can be found on the Eligible Volunteers Rebate Scheme page on the Victorian Government website:
www.vic.gov.au/Eligible-Volunteers-Rebate-Scheme

What this means for our community

Unfortunately, it’s not as simple as “we won’t pay it”. It’s important to understand that Council does not have control over how the money you pay towards your rates notice is distributed. We are still legally obligated to pay a proportion of your rates payment to the State Government.
While the ESVF tax amount will be clearly differentiated from Council’s rates on your rates notice, which will include municipal and waste charges, it isn’t possible to invoice the ESVF separately. If we are not able to collect the ESVF from ratepayers, the shortfall must come from Council’s own budget. This will greatly impact our financial sustainability and our ability to serve our community. It will also risk ratepayers falling into arrears. If you’re genuinely having difficulty paying your rates, please reach out as there are measures in place to assist you. We want to help our residents who are experiencing financial hardship. Payment plans can be arranged by contacting Council’s Rates Department on (03) 5355 0209 or email [email protected].

With concern for the potential impact on the mental health and wellbeing of its residents, Council wishes to ensure those affected are aware of the following available support services. For mental health support, residents are encouraged to contact Lifeline on 13 11 14 or visit www.lifeline.org.au. For financial assistance and wellbeing support, the Rural Financial Counselling Service can be reached at 1300 735 578 or via their website at wswrcs.com.au

What we’re doing next

Council maintains its strong objection to the introduction of the Emergency Services Volunteer Fund (ESVF).

We will continue to work with the Municipal Association of Victoria (MAV), other councils and groups such as the Victorian Farmers’ Federation, to oppose the implementation of the ESVF in its current form.

We will not give up. We will continue to advocate to the State Government for a fairer outcome for Ararat Rural City residents.

Kind regards,
Ararat Rural City Councillors

Mayor, Cr Jo Armstrong
Deputy Mayor, Cr Bob Sanders
Cr Rob Armstrong
Cr Peter Joyce
Cr Teli Kaur
Cr Luke Preston
Cr Bill Waterston