Second emergency services tax hike: Charge on landlords and investors to double

Landlords and investment property owners must pay twice as much in fixed emergency services tax charges from July 1 next year.

Farmers at recent rallies have repeatedly warned all Victorians are about to slugged massive tax hikes, with landlords and their tenants the latest in the firing line.

Landlords, holiday home owners and even farmers renting houses to staff will have to pay at least twice as much in fixed emergency services tax charges on these properties from July 1 next year.

Community anger has already reached fever pitch over the government’s rebadging of the current fire services property levy as a an Emergency Services and Volunteers Fund tax, increasing the amount collected from $1.033bn this financial year to $1.623bn in 2025-26.

But Treasurer Jaclyn Symes has revealed the government will rake in another $1.8bn in ESVF tax from July 1 next year on the back of landlords, their renters and anyone with residential property is not their principal place of residence.

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

The government has already announced Victoria’s 2.8 million residential taxpayers would have to fork out $136 each in ESVF fixed charges in 2025-26, while farmers, commercial and industrial players pay a fixed charge of $276.

But the ESVF Act, which passed through parliament last month with the support of the Greens, includes a clause that states “the fixed charge payable in respect of residential land for the 2026-2027 levy year and each subsequent levy year is the same fixed charge as that payable in respect of commercial land, industrial land, primary production land and public benefit land”.

However in what can only be regarded as confusing legislative drafting the Act also states: “On and after 1 July 2026, an owner of leviable land is entitled to a concession of 50 per cent of the fixed charge part of the levy amount in respect of one parcel or a portion of one parcel of leviable land that is used exclusively for residential purposes by the owner and is the owner’s principal place of residence”.

The move leaves anyone with any investment or rental property, such as mum and dad landlords, unable to claim the discount and paying $276 or more in fixed charges.

When Ms Symes was asked by Opposition Nationals MP Melina Bath what was driving next year’s July 1 tax hike to $1.8bn, the Treasurer said it was “based on the increased fixed charge for the non-principal places of residence”.

It means landlords and investors will be forced to chip in an extra $177m in ESVF taxes in 2026-27, on top of the massive tax hike they face from July 1 this year.

Victorian Nationals leader Danny O’Brien said “to get rid of the tax, we need to get rid of this government”.

While farmers, CFA volunteers and the United Firefighters Union have led the charge against the tax, Victorian Farmers Federation president Brett Hosking has repeatedly it affects every household and business.