Treasurer urged to lower ESL after bushfire-free summer

TREASURER Tom Koutsantonis must capitalise on this year’s bushfire-free summer and provide economic relief to South Australian households crippled by rising bills, the Property Council says.

TREASURER Tom Koutsantonis must capitalise on this year’s bushfire-free summer and provide economic relief to South Australian households crippled by rising bills, the Property Council says.

Pressure is growing for Mr Koutsantonis to lower the contentious Emergency Services Levy — which has almost doubled in the past three years — in next month’s State Budget.

For an average property worth $420,000, South Australian homeowners pay an ESL bill of $268.

A whopping 169.8 per cent increase in 2014, blamed on Federal Government cuts to health and education, provoked community anger and prompted CFS volunteers to refuse to fight fires on government land.

A hay shed burns near Hamley Bridge, during the Pinery bushfire in 2015. Picture: Naomi Jellicoe

Bushfires that ravaged Bangor, Sampson Flat and Pinery — which required intensive resources to fight — had made more modest increases in the past two years slightly more palatable.

But Property Council executive director Daniel Gannon said the lack of recent blazes meant Mr Koutsantonis had nowhere to hide.

“South Australians want a budget that is focused on cuts and carrots, not whacks and tax,” Mr Gannon said.

“Over the past three years, the State Government has increased the ESL on a $500,000 house by 205 per cent, with very little direct relevance to emergency services. Over that same period, the Consumer Price Index has increased by 4.3 per cent.

“So if this tax hike is not about emergency services, then it’s time for the Government to make that crystal clear to taxpayers. Otherwise it has a very creative definition of emergency services.”

Mr Koutsantonis was coy on whether he would bow to the pressure and reduce ESL bills, nine months out from next year’s state election.

A huge column of smoke from the Pinery fire brings darkness to Freeling. Picture: David Evans

He said any surpluses or drops in expenditure would be “rolled over and factored into the rate set for the next year”.

“The ESL rate is determined after emergency services agencies formally request the funding required to deliver services to the community in the coming year,” he said.

“That process is ongoing and the rate will be announced as part of the State Budget.”

The Opposition has pledged to cut back on “waste and mismanagement” to reverse the recent hikes in the levy, which Opposition treasury spokesman Rob Lucas said would reduce the tax by $90 million — cutting it by just under a third.

“The ESL has been hitting and impacting struggling South Australian families and business and it’s now time to provide some relief,” Mr Lucas said.

SA Council of Social Services chief executive Ross Womersley said the ESL was a “de facto income tax” and said South Australians would be more accepting of the tax if it didn’t masquerade as funding emergency responses.

“If the tax was rolled into an arrangement like a property tax, it would provide a more reliable income stream and might be more popular if they explained why it was needed,” Mr Womersley said.

ESL RISES OVER THE YEARS

2013-14 — 0.6 per cent rise.

2014-15 — 169.8 per cent rise. Funded CFS thermal imaging cameras, Bangor bushfire response, surf life saving clubs redevelopment, volunteer support and federal funding “shortfall”.

2015-16 — 9.1 per cent rise. Funded CFS bulk water carriers and protective clothing for volunteers, Sampson Flat bushfire costs, MFS emergency services communication centre and volunteer support.

2016-17 — 1.5 per cent rise. Funded $2.8 million Pinery fire response, fire trucks safety system retrofit, volunteer support and additional SAFECOM and SES funding.