Grocery costs set to soar, as Vic farmers hit with ‘outrageous’ new Allan government levy

A peak Victorian farming body has warned “an outrageous new tax” on the state’s food producers will inevitably be passed on to struggling Victorian families, making fruit, vegies and meat even more expensive at the checkout.

Fruit, vegetable, and meat prices are set to skyrocket in Victoria under a new levy imposed by the Allan government, farmers warn, with some producers revealing they are facing tax increases of more than $50,000.

The Victorian Farmers Federation is calling for an immediate halt to the Allan government’s new Emergency Services Volunteer Fund levy, which replaces the current Fire Services Property Levy and is currently under consideration in the Victorian parliament.

Farmers have warned the tax hike will push the price of food up for Victorians. Picture: David Geraghty

They warn it will have serious ramifications for farmers and consumers.

VFF President Brett Hosking warned that the new levy is a blatant cash grab, with farmers reporting they would need to find tens of thousands of extra dollars each year to pay the new tax, which would inevitably be passed on to consumers.

“This is an outrageous new tax that will hit every Victorian’s hip pocket, and farmers are being forced to pay the highest price with no justification. It’s a direct attack on the people who put food on our tables,” Mr Hosking said.

“At a time when families are already struggling with skyrocketing costs, and farmers are battling drought, bushfires, and rising expenses, this tax grab couldn’t come at a worse time. It’s completely unacceptable.”

Farmers and CFA volunteers will be forced to cough up thousands of dollars in extra tax. Picture: CFA

Euroa cattle farmer and longtime CFA volunteer Andrew said the state government had turned its back on farmers and volunteers, calling the charge a “con job”.

“It’s not a levy, it’s a tax,” he said. “And it’s causing a lot of angst. We’re the ones who get on the fire trucks. I’ve got my pager with me all the time and drop everything on the farm to fight these fires, rush to road accidents, and manage traffic control. There is just no respect for CFA volunteers at all.”

Andrew, who did not want to provide his last name, said he had no doubt the government would “make it as hard as possible to get the rebate.”

“Farmers are already under a lot of pressure; we’re waiting for rain, the price of our feed has skyrocketed, and now this,” he said.

“The gates open and the bull’s running at us.”

Farmers are struggling to understand the proposed changes after Treasurer Jaclyn Symes unveiled the new levy without warning in December.

The VFF states the new levy will see rates owed jump between 100 and 400 per cent from the current levy, which would cause the price of all primary produce to rise.

The change would result in some landholders receiving hikes in the tens of thousands of dollars, which would have to be passed on, or farmers would face bankruptcy, it’s claimed.

Health Minister Mary-Anne Thomas defended charging farmers more on Thursday, saying they were already exempt from land tax.

Despite widespread anger among volunteers, she claimed the levy was about “ensuring that our emergency service volunteers are actually supported”.

Ms Thomas also refused to concede that the levy would lead to an increase in grocery prices, claiming it was a “long bow” to draw.

“There are a range of reasons why we see price fluctuations,” she said.

CFA volunteers say the Allan government has turned its backs on the country. Picture: Jason Edwards

One farmer told the Herald Sun the levy was ripping money out of the bush and out of consumers’ pockets to fund major infrastructure, “which is just putting money into bikie gangs” – referencing the recent allegations of corruption in Big Build state government projects.

The concern over costs comes as Victoria’s volunteer awareness association slammed the Allan government, claiming the state was using “lies” and the name of volunteers to raise revenue and fund its spiralling debts.

“The new fund is a rebadged and dramatically enlarged Fire Services Levy fund on all Victorian ratepayers, not just to pay most of the fire services costs – FRV and CFA – but to transfer State Budget costs for all related emergency services including not just emergency services telecommunications, state parks, forests, and water catchment bushfire services, but a host of other administrative costs to a new ratepayer charge,” said Emergency Volunteer Awareness Campaign director Garth Head.

Central Victoria cattle farmer Michael, who is also a CFA volunteer, called the levy “a slap in the face.” “We’re the ones who are volunteering our time, and no one reimburses us for the work on our property that we drop to fight these fires,” he said.

“Volunteers have to pay extra tax to fund what we’re volunteering for. It’s completely illogical. CFA funding has dwindled away, our tankers are 30 years old – we’re losing all around.”

However, a Victorian government spokesperson said Labor would “always back our hardworking farmers and agricultural sector”.

“That’s why we’ve slashed payroll tax for regional businesses to the lowest in the country and have exempted primary producers from land tax,” the spokesperson said.

“Regional Victoria is one of the most fire-prone areas in the world and natural disasters such as fire, floods and storms are becoming more frequent and severe.

“This is all about making sure our emergency services have the sustainable funding and equipment they need to keep Victorians safe and to recover from natural disasters.

“Every single dollar raised by the new Emergency Services and Volunteers Fund will support our emergency services – helping them to keep communities safe year-round.”

The government said the increase to the average farm was around $13 per week and would deliver more funding, resources and equipment for hardworking CFA and SES volunteers.