Fire services levy unfair: Victorian Opposition “open” to its review

The Victorian Opposition has stated it is “open” to reviewing inequities in the collection in fire services property levies.

The heat is on the fire services property levy to pay for soaring firefighter wages.

The Victorian Opposition has stated it is “open” to reviewing inequities in the collection of $800 million in fire services property levies from households and businesses across the state.

“A series of changes made in 2020-21 by Andrews may have introduced what, on the surface, appear to be inconsistent or inequitable impacts and the Liberals and Nationals are open to consideration of a review to ensure the system is working fairly,” Opposition Treasury spokesman David Davis said.

“Daniel Andrews and Labor have increased the Fire Services Levy take by 20.4 per cent since it was introduced in 2013-14 through to this year 2021-22.”

The Opposition was responding to calls from Victorian Farmers Federation president Emma Germano for a review, given “huge variances we are seeing between land values across the state is leading to unfair outcomes in the calculation of the FSPL”.

An analysis of the FSPL collected from farmers shows that while some will pay 30 per cent less to fund the CFA and FRV in 2022-23, others will pay 30 per cent more, due to huge variations in land valuations from shire to shire.

Ms Germano said that unlike local government rates, where councils have differential rating powers, the FSPL has no mechanism to take into account the localised factors that affect land values.

“The VFF has long argued for a review of how the FSPL operates. A review should look at the feasibility of the levy being capped on a per hectare basis, or for each council area like the rate cap.”

“It should also look at calculating the levy based on the capital improved value less the site value.”

“These are positions that have previously been put to the government by the VFF.”

The 2022-23 State Budget delivered by Labor Treasurer Tim Pallas shows the Government intends to steadily lift the amount it collects in FSPL from $800m in 2022-23 to $895m by 2025-26.

The FSPL covers the majority of fires service costs, which have soared in recent years on the back of the Andrews Government’s decision to merge the urban MFB with the CFA career firefighters and its 38 stations to form the career-only Fire Rescue Victoria service on July 1, 2020.

The FRV’s first annual report for 2020-21 shows it spent $756m on employee expenses, plus another $104m on operating expenses, with total costs reaching $918m.

The report also shows FRV’s 3570 operational staff and firefighters took home an average $20,112 in overtime in 2020-21.