“Breaking point”: Regional councils beg Jacinta Allan to scrap emergency services levy

Regional councils are declaring war on the Allan government over its controversial new volunteer levy, with one mayor warning the consequences of the new tax “could be disastrous” for struggling farmers.

Regional councils are declaring war on the Allan government over its controversial new volunteer levy, calling for the immediate “cease of its introduction” as communities deal with the ongoing drought.

Southern Grampians Shire Council Mayor Dennis Heslin published an open letter to Premier Jacinta Allan on Friday afternoon, calling for a “moratorium” on the new levy, which was designed to rip an extra $2.1bn in tax revenue from landholders – mainly from people in the regions.

“It is vital that the Premier scraps the proposed levy and listens to what our communities are saying – that the levy, compounded by the current drought, is not only poorly targeted, but the consequences could be disastrous,” said Cr Heslin.

“Our communities, especially our farming communities, are at complete breaking point due to the ongoing drought that is ravaging Western Victoria. We have farmers without water and without fodder, bills piling up to feed the stock they are holding onto or selling what they can’t, with little hope to restock once conditions improve.

“The ESVF places an unfair burden on those who are the backbone of our regional economy and our rural fire service, asking them to foot the bill for emergency services at a time when they are struggling just to survive.”

Regional councils are pleading with the state government to scrap the new levy. Picture: Valeriu Campan

The Municipal Association of Victoria have previously spoken out against the tax and 14 councils have written privately to the government to raise concerns.

The Herald Sun understands several of the state’s 79 councils are also now seeking legal advice on whether there will be ramifications if they choose not to collect the levy through rates notices, which is what happens with the current Fire Services Levy.

In December last year, the Allan government announced it would replace the Fire Services Levy with a new, expanded Emergency Services and Volunteers Fund, which would see the tax amount that households pay almost double.

The state claimed the levy change was necessary to fund organisations such as the SES, which have previously been funded from general revenue.

The controversial legislation was passed in an eleventh-hour deal with the Greens and crossbenchers in the Victorian parliament this month, which was met with huge outcry from regional communities.

Thousands of farmers and CFA firefighters gathered outside state parliament to protest the new levy. Picture: William West

After the vote CFA brigades went offline across the state on the night the bill passed. The new levy will start on July 1.

Last week thousands of Victorians descended on parliament to rally against the new tax.

The South Grampians open letter was issued Friday and it’s understood more councils will do the same in coming days.

The move comes as Victorian Farmers Federation President Brett Hosking warned the levy could be the death knell for some smaller communities.

He said analysis by councils had shown the levy will remove up to $8m annually from local economies.

“From what councils have told us, it’s $6 to $8 million which would have been spent in those communities that will now no longer be there,” he warned.

“Usually that money will go around and around that community several times before it leaves the area. I’ll go and buy some milk at the local store. The local store will go to the mechanic to get their car fixed. The mechanic will go back to the store and buy his coffee. That money will no longer be there.”

Opposition Leader Brad Battin, backed by Nationals Leader Danny O’Brien, has previously promised that if elected next year, he would “scrap the tax” and return to the existing fire services levy.