Allan government forced to shelve ‘bloody wrong’ emergency services tax

The Allan government has failed to secure crossbench support for its emergency services tax, meaning a hostile push by farmers and councils to scrap the “dog of a tax” will drag out across the federal election campaign.

The Allan government has been forced to shelve its “bloody wrong” emergency services tax in an embarrassing backflip that will further ignite an already hostile campaign from firefighters, farmers and councils.

The levy – which has been referred to as a “dog of a tax” – will be debated in parliament’s upper house on Thursday, but the government won’t put the legislation to a vote, as originally planned, because it has failed to secure crossbench support.

Failure to pass the bill this week means the hostile campaign will now drag out across the federal election campaign, at a time when Jacinta Allan’s brand is already causing huge issues for federal Labor.

And with parliament not resuming until April 30, it leaves Treasurer Jaclyn Symes with the prospect of a massive black hole in her first budget, which will be handed down on May 20.

The Allan government faces an uphill battle to pass its contentious Emergency Services and Volunteer Fund. Picture: Valeriu Campan

The Allan government is banking on the increased tax, which replaces the existing Fire Services Levy, to rake in an extra $2bn over the forward estimates.

The Herald Sun understands that Ms Symes, who is also the leader of the government in the upper house, has so far been unable to wrangle any crossbench MPs to support the Bill.

Sources said the four upper house Greens MPs — who the government often looks to for support to pass legislation — had been asked by their federal counterparts to not support the Bill while the campaign was on.

Nationals leader and opposition emergency services spokesman Danny O’Brien said it was “great news” that the government didn’t have the support to pass the bill this week.

“This Bill is a massive hit on Victorians during a cost of living crisis,” he said.

“We now need the Labor government to realise this was a mistake and withdraw this unfair tax plan altogether.”

But shadow treasurer James Newbury said Victorian’s “won’t be safe from this $2.1bn dollar new tax until Labor scraps the Bill from parliament”.

“Labor’s shelving of their great big new dog of a tax is only a stay of execution,” he said.

Outside parliament on Thursday, Premier Jacinta Allan defended the tax grab and said an increase in natural disasters meant that emergency services needed to be appropriately funded.

“The SES have been calling for these changes,” she said.

“Ultimately it’s about providing the support to those thousands of volunteers who get out in the worst of circumstances to support us.”

The government said expanding the tax will support a broader range of emergency services, including the SES, Triple Zero Victoria, State Control Centre, CFA and Forest Fire Management.

But the move has sparked a furious backlash from regional communities who have warned they will be disproportionately impacted by the tax.

The Herald Sun on Thursday revealed the peak body that represents rural councils — who will be forced to collect the levy from their communities — has urged the government to scrap the tax entirely and go back to the drawing board.

The new tax replaces the former Fire Services Levy. Picture: Facebook / Kerang Fire Brigade

Council Watch president Dean Hurlston, who is a staunch critic of local government, wrote to all MPs this week urging them to reject the bill.

“It’s rare that we defend them (councils), but in this case, you have left us no choice,” he wrote.

“Councils are under a tight rate capping regime (rightly so), but it is in our view, an abusive relationship between the state and councils to treat them in this manner.”

Victorian Chamber of Commerce and Industry chief executive Paul Guerra also called for the government to look at other ways to fund its volunteer emergency services.

“This is a short-sighted cash grab on the very industries that our state is renowned for and that keep Victoria moving. It will drive up food and other prices as the additional cost will be passed to consumers,” he said.

Originally published as Allan government forced to shelve ‘bloody wrong’ emergency services tax