CFA and VicSES volunteers miss out: No emergency services tax rebate on commercial properties

Non-farming CFA and VicSES volunteers have been denied access to emergency services tax rebates on their businesses.

CFA and VicSES volunteers who own thousands of businesses across periurban Melbourne and regional Victoria are unable to claim rebates on their commercial properties.

Thousands of CFA and VicSES who own a business have been denied access to rebates on their commercial properties under the Allan Government’s new emergency services property tax, which comes into effect on July 1.

Farmers can claim a tax rebate on up to $5m of their land, but the government is not extending the same offer to volunteers with commercial or industrial properties.

All Victorian businesses owners face the tax doubling, from 66.4c per $1000 of their properties’ capital improved value this financial year to $1.33/$1000 of CIV in 2025-26, plus a $275 fixed charge.

But these volunteers can only claim the rebate on their homes, which will be taxed at 17.3c/$1000 of CIV, plus a fixed charge of $136.

A screenshot of the Victorian Government's Emergency Services and Volunteers Fund frequently asked questions website.

It means that while a farmer who volunteers for the CFA gains a full rebate on $5m of their land, a fellow brigade member with a business of the same value in town will pay $6925.

Even a small-business owner with a $1m commercial property faces paying $1605 under the new emergency services tax regime, compared to $939 under the current fire services property levy.

Wangaratta CFA group officer and real estate agent Garry Nash said “it will create divisions in our CFA volunteers”.

“Many of our volunteers are builders, run businesses, are lawyers – (working in) a range of diverse areas, who are still going to be paying significantly more,” Mr Nash said. “It’s pushing us to the brink.”

Horsham real estate agent Wes Davidson said a lot of people were unaware of the tax hike they were about to face from July 1.

He and other agents are pressuring the Real Estate Institute of Victoria to mount a campaign against the tax.

“Now is not the time to take your foot off the pedal, but put it flat to the floor,” Mr Davidson said.

Victorian Chamber of Commerce and Industry Chief Executive Paul Guerra said “we have been clear from the outset – this new levy should be scrapped and returned to the previous model.

“Just because we’re not in drought doesn’t mean people aren’t doing it tough. Costs are up across the board, and this is yet another blow.

“Volunteers should be recognised equally – whether they farm or run a business – and all businesses should be spared from a tax hike that will hurt jobs, investment and regional economies.”

Last Friday Treasurer Jaclyn Symes published a government gazette that forecast its tax take would increase from $1 billion under the 2024-25 FSPL to $1.55 billion under the new emergency services levy, of which $664m would be collected from commercial and industrial property owners.

The gazette revealed a $165m cut to CFA, FRV and VicSES budgets.