Victorian farmers win extra two year reprieve from emergency services tax
Victorian farmers are “breathing a huge sigh of relief” after winning a reprieve from the state’s controversial emergency services tax in a major Allan government backdown.
Victorian farmers and landlords have scored a temporary reprieve from one of the state’s most controversial taxes in a major Allan government backdown.
Primary producers have escaped the state’s increased emergency services tax for an extra two years while investment property owners have been let off the hook for another 12 months.
Furious farmers forced the government’s hand following huge protests and widespread anger in the bush over the highly controversial Emergency Services and Volunteer Fund.
Following a series of rallies and amid disastrous drought conditions, Treasurer Jaclyn Symes in May announced that primary producers would continue to pay the same amount they paid in 2024-25 under the former Fire Services Levy for one year.
But on Friday, as she unveiled the budget update, Ms Symes revealed the lower rate for farmers would be frozen for at least another two financial years.
“This is, again, in continued recognition of dry conditions, seasonal impact, and the fact that farmers have had to respond to that, including a lot of de-stocking and the like, and we know it will take some time to build back up,” she said.
Landlords will score another year at the current rate which was supposed to increase to the same rate paid by commercial and industrial property owners in July next year.
Ms Symes – who in March declared that landlords “generally (have a) higher capacity to pay” – said another 12 months at the same rate would be given to investment property owners to make sure “we can get it right administratively”.
Rebates for CFA volunteers will also be expanded after brigades across the state launched a regional revolt over the tax, threatening to walk off the job en masse amid warnings of a potentially catastrophic bushfire season.
Currently CFA volunteers are able to get a rebate against a farm valued at up to $5m.
The cap will now increase to farms valued at $10m.
“So effectively, this means that for farmers that have property values in excess of $5m which is where the cap originally was, the cap will now be $10m,” Ms Symes said.
“This is based on feedback and pretty much a recognition of the fact that many farmers might have high value properties but because of the dry conditions, they may not be as productive.”
It also comes after councils threatened to rally against collecting the tax, with fierce backlash from ratepayers.
The emergency services tax hike, which has almost doubled the amount households are paying for the levy, was first announced in December.
The laws then passed with the support of the Greens and the crossbench earlier this year following changes that ensured “every single dollar” collected from the levy must be spent on emergency services, including the CFA and VICSES.
Victorian farmers welcomed the decision to freeze the tax for a further two years.
Victorian Nationals leader Danny O’Brien accused the Labor government of trying to “hide” the tax hike until after the next election.
“Victorians shouldn’t be fooled,” he said.
“This is a $3 billion hit on Victorians over the next couple of years, and Labor is simply trying to put off the pain for one year to put it beyond the election.
“By putting off the residential increase for the fixed rate for one year is just a political ploy for the government to try and hide a bit at that time.”
Ross Johns, president of the Wimmera Mallee Environmental and Agricultural Protection Association, said it was “recognition the government got it wrong at the outset.”
He said “it was obvious that the whole process of implementing it was flawed.”
The only thing that surprised him was that it took the government this long to realise it was not viable.
“I personally think it will be scrapped in the end,” he said.
Victorian Farmers Federation president Brett Hosking welcomed the move, saying farmers across the state would be “breathing a huge sigh of relief”.
“Victorian farmers told us the Emergency Services Volunteer Levy was their number one issue and we’ve been moving heaven and earth to get to today’s decision,” he said.
“This tax was set to rip hundreds of millions out of the pockets of cash-strapped farmers in the middle of a record-breaking drought.
“Freezing the levy and increasing the exemption threshold acknowledges the massive pressure farmers have been under, particularly following years of drought and escalating operating costs.”
Mr Hosking urged the government to consider further reform to ensure farmers were not “staring down the barrel of the same tax in two years’ time.”
“This cannot be the end of the conversation,” he said.
Originally published as Victorian farmers win extra two year reprieve from emergency services tax
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