Councils not equipped to collect new fire services levy, warn of ratepayer backlash

Councils have warned of massive backlash from ratepayers saying they’re not equipped to collect the charge from the Allan government’s new emergency services tax.

Councils are warning the Allan government that they could rally against collecting the state’s newest emergency services tax, saying the “cost shock” and backlash from ratepayers would be “massive”.

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.

With legislation to be introduced to parliament this week, the increased tax will come into effect from July 1 but councils have warned they’re not equipped to collect the charge.

Under the changes, households are set to be slugged on average an extra $60 per year, while farmers will be on the hook for an extra $13 per week.

The government said the tax increase was justified because fire, floods and storms were becoming more frequent and severe.

CFA and Forestry and others work to mop up spotfires at the foot of the Grampians National Park. Picture: Jason Edwards

Councils have been collecting the Fire Services Levy for the state government through rate notices for more than a decade, but they’ve warned the new levy will be “more complicated” to administer and backlash from local residents will be “massive”.

One unnamed mayor said property owners and farmers were already complaining.

“They know it’s coming and it’s not the only cost that’s going up with all the other changes,” he said.

Municipal Association of Victoria President Jennifer Anderson said councils across the state had indicated they were “not able to reliably implement these proposed changes”.

“The local government sector is supportive of increased resources to the emergency services sector in Victoria … however the cost burden should not be on councils to collect or administer this state levy on behalf of the government,” she said.

“The MAV is also concerned about the cost shock likely to impact rural residents.

“The MAV will continue to constructively work with the state government … however we want to make it very clear that this is a state levy, and the state government needs to communicate the benefits of this expanded emergency services levy to rate payers across the state.”

The tax has been implemented as fire, floods and storms are becoming more frequent and severe. Picture: AFP

Active CFA and VICSES volunteers and life members will be able to access an exemption on the tax.

But last minute changes to the scheme will mean that farmers – who are also emergency service volunteers – will now be able to claim the rebate against a farm, valued at up to $5m, even if it isn’t their main home.

Treasurer Jaclyn Symes said the government would also simplify the administration of the fund for councils by introducing a rebate system for eligible volunteers and also provide funding to help with administrative costs.

Ms Symes said every dollar collected from the levy would be directed to emergency and disaster recovery services.

Originally published as Councils not equipped to collect new fire services levy, warn of ratepayer backlash