Treasurer Tom Koutsantonis announces Emergency Services Levy decrease

SOUTH Australian homeowners will be able to afford an extra McDonald’s cheeseburger after Treasurer Tom Koutsantonis announced a $3 decrease in the controversial Emergency Services Levy.

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HOMEOWNERS can afford a McDonald’s cheeseburger or small coffee, but not both, as Treasurer Tom Koutsantonis offered a meagre $3 in annual relief from the controversial Emergency Services Levy.

The 1.1 per cent decrease was unveiled on Thursday, and equates to just $3 for the average homeowners who still face a $260 hit in the mail this year.

It has been criticised as a “missed opportunity” by a leading industry group and lampooned by an Opposition that’s promising a huge cut if it wins next year’s election.

Tess Rudd said she didn’t know what the ESL was used for when she first received a bill for it. Picture: Mike Burton

Mr Koutsantonis doubled the average ESL bill in 2014 by removing remissions in his first state Budget. At the time, he blamed it on reductions in federal funding to SA.

“We raise exactly what we need to fund our emergency services,” he said yesterday.

“It’s controversial, it’s difficult, but most of all it’s transparent.”

Largs North resident Tess Rudd said the $3 cut was small, but better than another rise.

“When I first got it (an ESL bill), I wondered what I was paying this for,” she said.

“I’d love more money off my bill, but $3 is better than nothing.”

SA Treasurer Tom Koutsantonis has announced a small decrease in the Emergency Services Levy. Picture: AAP Image/Sam Mooy

Homeowners will be able to afford a takeaway coffee ...

... or perhaps a McDonald’s cheeseburger with the money they save.

The $3 cut is for an average home, valued at $443,000. The tax is charged progressively, meaning higher charges for more expensive homes. Regional homeowners, pensioners and concession card holders are all eligible for deductions of between 20 and 90 per cent.

Opposition treasury spokesman Rob Lucas said the decrease was “an insult” to battlers.

“Tom Koutsantonis mugged SA families three years ago and now he’s throwing them a couple of coins ­towards a cup of coffee,” Mr Lucas said.

Property Council of Aus­tralia SA executive director Daniel Gannon said the announcement was disappointing and people with a property valued at $500,000 were paying 205 per cent more than they were three years ago.

Earlier this week, he urged Mr Koutsantonis to capitalise on a bushfire-free summer and substantially reduce the ESL.

“An owner of a median-­valued property wouldn’t even be able to purchase a takeaway coffee with a $3 reduction in their ESL bill,” Mr Gannon said.

Mr Koutsantonis said the Liberal pledge to return remissions, at a cost of $90 million a year, would reward people with higher property values.

“What they’re not telling you is where they’ll find the $90 million to return the remissions,” Mr Koutsantonis said.

“It doesn’t come out of some magical pool. It comes out of other taxes and charges.

“This is a tax that tells you exactly where your money is going. And not one cent of it goes anywhere else other than emergency services.”

Regional homeowners, pensioners and concession card holders are all eligible for deductions ranging between 20-90 per cent of their total ESL bill.

What to do with your spare $3

— A five-pack of two-minute noodles

— One Saturday Advertiser, or the Sunday Mail

— A McDonald’s cheeseburger

— Four Cavendish bananas

— A small coffees

— A small Palmolive dishwashing detergent

— Homemade glitter slime on Gumtree