Residents, Businesses and Local Farmers Hit Hard By New State Emergency Services Levy
Ararat Rural City Council is preparing to strongly advocate against the State Government’s Emergency Services and Volunteers Fund (ESVF), proposed to replace its Fire Services Property Levy (FSPL).
Following a unanimous decision at the February Council Meeting, Council will submit a motion to the Municipal Association of Victoria (MAV) condemning the ESVF. A consolidated motion will be presented at MAV’s State Council Meeting on Friday 16 May 2025.
A key reasoning behind this decision is the disproportionate impact the ESVF will have on the region’s agricultural sector, with significant flow-on effects likely to be felt throughout the local economy and the broader community.
The incoming ESVF will impose a 189% variable rate increase on primary producers, costing Victorian farmers, nearly three times their FSPL rate. Council's collection of the ESVF for the Victorian Government is projected to be more than double that of the FSPL, rising from approximately $2.7 million in 2024/25 to over $5.5 million in 2025/26. Primary producers will shoulder the majority of the $2.8 million ESVF increase, contributing to approximately $2.5 million, or 88% of the total increase.
In one example of the ESVF’s significant financial strain on rural communities, one local farmer, and active emergency services volunteer, paid approximately $14,761 in FSPL in the 2024/25 financial year. Under the proposed ESVF, and based on the current year’s Capital Improved Value (CIV), their levy is expected to increase to almost $40,000.
At best, this farmer would see a $4,150 cost reduction from the volunteer exemption, and potentially less, demonstrating the proposed change's minimal impact. This excessive increase places an unjust burden on those who contribute most to emergency relief and response efforts in regional and rural areas.
“To penalise a community that has such a strong representation of volunteers, who selflessly give their time and resources to fight fires, is one of the most inequitable decisions I've seen from the State Government,” said Ararat Rural City Council Mayor, Cr Jo Armstong. “We will pursue every avenue available to do our best to protect our community from this incredibly unfair imposition.”
While the ESVF offers exemptions for active emergency services volunteers and life members, these provide minimal relief, as their primary place of residence is often on a separate title to their primary production properties, or they have multiple properties that have been acquired over several years or generations.
In another case study that demonstrates the substantial financial impact of the ESVF, one local farmer and active emergency services volunteer paid approximately $27,000 in the FSPL in the 2024/25 financial year. However, under the new ESVF, their levy is predicted to increase to over $77,000 based on the current year’s Capital Improved Value. The volunteer exemption offers a maximum saving of $4,150 for this farmer, with the actual amount being potentially lower, highlighting its limited practical benefit.
"This levy places an unfair burden on our farmers and is going to cause severe financial hardship for those in primary production,” said Ararat Rural City Council Deputy Mayor, Cr Bob Sanders. “This is especially difficult after our region has endured two major bushfires in less than a year. The cost to our community far outweighs any perceived benefits."
Additionally, under the new ESVF, residential and commercial rate payers will be impacted by close to double the existing FSPL variable rate, while industrial properties will see a 64% variable rate increase.
Beyond the burden on residents, there are growing concerns that the proposed ESVF will negatively impact the local economy, leading to decreased spending in local businesses and community groups and reduced private investment in environmental sustainability.
Local councils are currently tasked with collecting the proposed ESVF, placing a significant administrative strain on local government resources and directly impacting the delivery of essential community services.
“This is going to affect every ratepayer – urban and rural alike – and create a significant financial burden on our entire community, especially our primary producers and those with fixed incomes,” said Ararat Rural City Council CEO, Dr Tim Harrison. “Local councils should be serving their communities, not acting as collection agencies for a state-imposed tax, especially when there's no guarantee that the collected ESVF funds will be reinvested locally.”
Debate on the Victorian Government's ESVF legislation has been postponed until its scheduled Parliament sitting on Tuesday 13 May 2025.
