Premier Jacinta Allan announces new drought cash

Drought support will be broadened statewide and heightened in the parched southwest, including a pause on the controversial emergency services levy increase. See the latest.

A temporary pause on the controversial emergency services and volunteers levy will form part of a refreshed drought package, announced by the Premier today.

Jacinta Allan confirmed a temporary statewide freeze of the tax, originally only paused in the drought zone of southwest Victoria.

It means the ESVF variable rate on primary production properties will remain at 28.7 – the same as it was in 2024-25 – for the duration of the 2025-26 financial year.

However, Victoria’s volunteer and union firefighters issued a joint statement saying the temporary pause did not go far enough and would still “hit businesses and homeowners hard.”

The latest $37.7 million package will allow any farmer across the state to access grants of up to $5000 to support on-farm drought management improvements, in addition to financial counselling and mental health support.

Water cartage and pasture ‘re-establishment’ are now also covered by the drought grants, which have now been doubled specifically in southwest Victoria to $10,000.

The state government also confirmed that farmers will still be able to claim a rebate on the emergency services tax on up to $5 million of their property’s capital improved value.

In a joint statement, Wimmera farmer Andrew Weidemann and United Firefighters Union secretary Peter Marshall said the temporary tax pause was not comprehensive.

The joint leaders of the ‘Not in Our Name’ protest called for “an immediate public inquiry into the tax … and the political machinations behind today’s announcement.”

“Today’s announcement is a temporary pause on the collection of this tax for some people,” Mr Weidemann and Mr Marshall said.

“It is not a full moratorium and the tax will hit businesses and homeowners hard this year.

“The Government has made clear that the pause for farmers is for this year only.

“The laws will remain on the books, and the tax will hang over the heads of every Victorian – including farmers, business and homeowners – for every year to come. The tax will simply continue to pay for the continued attacks on firefighters and their safety.

“We need to see this extra tax discarded entirely, and the laws that enable it repealed so it cannot be reintroduced when the government is no longer facing the intense political pressure that recent protests have produced.”

Victorian Premier Jacinta Allan meeting with VFF livestock group president Scott Young at his Ballan property on Friday

Visiting the Ballarat region on Friday, Jacinta Allan said a new drought task force will be established including the Premier, ministers, farmers, mayors and banking figures.

“The increasingly devastating effects of drought aren’t confined by postcode or region – its impacting farmers across Victoria,” the Premier said.

“It’s why we’re expanding support statewide.”

Along with state ministers Jaclyn Symes, Ros Spence and Gayle Tierney, the taskforce will be made a bipartisan effort with former Victorian National Party leader Peter Walsh.

Victorian Farmers Federation Brett Hosking will also be on the committee alongside Regional Cities Victoria chairman Shane Sali, National Centre for Farmers Health chief Susan Brumby and CWA Victorian president Jenny Nola.

Mr Hosking welcomed the Premier’s vist and levy alterations but said underlying problems related to taxation equity remained.

“This announcement offers a glimmer of hope and is recognition that the pressure we’ve applied is being heard,” he said.

“It’s a step in the right direction, but plenty more remains to be done.”

While today’s announcement does not constitute a drought ‘declaration’, it expands the footprint of what Spring Street considers to be in drought past the previously zoned southwest Victoria, Wimmera and west Gippsland regions.

Earlier this week, Mr Hosking met with the Premier in Melbourne for their first face-to-face meeting since the controversial fire services levy passed through State Parliament earlier this month. No mention was made of changes to the levy in the Premier’s announcement.

On Thursday, State Agriculture Minister Ros Spence visited southwest Victoria, meeting with Dairy Farmers Victoria president Mark Billing and United Dairyfarmers of Victoria president Bernie Free among others.

At the start of May, the Victorian government widened the drought zone from the previously designated southwest footprint to encompass parts of central Victoria, Wimmera and west Gippsland.

Federal Agriculture Minister Julie Collins also visited South Australia’s drought zone this week, although the majority of the Canberra cash allocated had been previously announced.