Victorian councils meet to plot end to Allan govt’s $3bn Emergency Services and Volunteer Fund ‘tax grab’

Councillors and mayors from 22 municipalities will meet today to devise a plan to stop the state government’s emergency services “tax grab”, as it’s revealed money will be pulled from landlords, holiday home owners and farmers with a second property.

Mayors and councillors from 22 local governments will meet today to devise a plan to halt the Allan government’s $3 billion emergency services “tax grab”.

The urgent meeting comes as new figures reveal a planned ramp up of the Emergency Services and Volunteer Fund will pull more than half a billion dollars in extra tax from landlords, holiday home owners and farmers with a second property over the next three years.

More than 30 councillors and mayors from 22 different local governments will meet at the Moonee Valley racecourse on Saturday to map out a plan to tackle the tax increases.

It comes as councils statewide grapple with a slew of complaints after the government tasked them with collecting the deeply unpopular tax.

United Firefighters Union Secretary Peter Marshall, who led several heated protests against the tax earlier this year, said the forum would send a stern message to the Allan government.

“Local councillors know that the residents and businesses in their area can’t afford this obscene tax grab,” Mr Marshall said.

“They know they depend on emergency services and are alarmed that emergency service funding will be cut back under a cost-shifting plan that uses firefighters as an unwilling alibi for budget repair.”

Peter Marshall has led several heated protests against the tax this year. Picture: Valeriu Campan

University of Newcastle Professor Bill Mitchell and prominent farming advocate Andrew Weidemann AO will also speak at the event.

The ESVF passed parliament earlier this year with the support of the Greens, increasing the amount collected from Victorian homeowners, businesses and farmers from $1.033 billion to $1.623 billion per year.

The tax consists of a fixed charge and a variable component based on the property’s capital improved value.

By 2026-2027, total revenue will jump to $1.8 billion as fixed charges double for landlords, holiday home owners and farmers with a second property.

The $177 million increase will result in a more than $500 million hit to landlords and renters over the next three years.

Real Estate Institute of Victoria president Jacob Caine said the increase, which comes on top of “a raft of additional taxes and costs”, could have a “detrimental” impact on the rental market.

“Unfortunately for many rental providers this either means selling the property or increasing rent,” he said.

Firefighters protesting the fire services levy earlier this year. Picture: David Caird

Opposition emergency services spokesman Danny O’Brien said the figures showed the tax was simply about filling Labor’s “budget black hole”.

“At a time of a cost-of-living crisis and soaring rents, this new tax will only make housing harder to find and more unaffordable for all Victorians renters,” he said.

Following fierce backlash, Premier Jacinta Allan announced that Victorian farmers would get a one-year reprieve from the initial increase.

However, it’s expected that the levy hike will be applied from 2026-2027.

Yarra City Mayor Stephen Jolly, who will be at Saturday’s meeting, said extra taxes came at a time when many locals could least afford it.

“Local business owners whose rates are more than doubling are being hit hard here,” he said.

Geelong Councillor Trent Sullivan said councils were being “forcibly deputised as collectors of an unfair tax that papers over cuts to services.”

A Victorian government spokesman denied that any cuts were being made to FRV, CFA or VICSES’ budgets and pointed out that the previous Fire Services Property Levy was collected by councils.

“We are making sure our emergency services have the resources and equipment they need to keep Victorians safe and to recover from bushfires, floods and storms,” he said.

Originally published as Victorian councils meet to plot end to Allan govt’s $3bn Emergency Services and Volunteer Fund ‘tax grab’