How the new ESVF tax will affect Victorian farmers

CFA and VicSES volunteers who own farms worth more than $5m will still be worse off under the government’s new ESVF tax, with refunds capped at up to $4150.

Capping the rebate on the new Emergency Services Volunteer Fund tax at $4105 will leave many of the CFA’s farmer volunteers worse off.

Farmers who are CFA and VicSES volunteers will be able to claim refunds of up to $4150 under the Allan Government’s new Emergency Services Volunteer Fund tax, which comes into effect on July 1.

Treasurer Jaclyn Symes said farmers who were volunteers could apply for an exemption on paying the tax on property worth up to $5m in capital improved value.

However many farmers will still be worse off.

Under the current Fire Services Property Levy, farmers paid 28.7c per $1000 of their property’s CIV this financial year.

But under the new ESVF property tax farmers will pay 83c/$1000 of CIV in 2025-26 – a three-fold increase.

It means a typical $15m Victorian farm, which paid $4305 in FSPL levies this financial year, faces paying $12,450 in 2025-26.

If that same property owner is a CFA or VicSES volunteer they can apply to the State Revenue Office for a maximum rebate of $4150, which still leaves them with an ESVF tax bill of $8300 – almost twice what they paid under the FSPL.

Victorian Farmers Federation president and CFA volunteer Brett Hosking said triple the levy would hurt all Victorians.

As for the rebate, Mr Hosking said: “It’s just wrong for many volunteers to be still funding a service they have to provide.”

Volunteer Fire Brigades Victoria chief executive Adam Barnett said the government was yet to consult the group’s members, which was a statutory obligation.

Even with the rebate, Mr Barnett said volunteers were very concerned about the impact of the new tax on their communities.

“People can’t afford it and the government has underestimated the pain communities are feeling,” he said.

Under the FSPL the government generated $1.033bn in 2024-25 levy revenue, but the ESVF will lift its tax take to $1.649bn in 2025-26 and $1.8bn in 2026-27.

However just $50m of the $616m in extra revenue the government gains in the new financial year will go towards supporting CFA, VicSES, Surf Live Saving Victoria and community coast guard volunteers.

Instead the ESVF legislation, introduced to parliament this week, opens the door for the government to use most of the extra cash for public servants’ wages.

The Bill states that ESVF funding can be used to fund up to 95 per cent of the following government agency budgets:

Triple-0 Victoria, which cost $343m to run in 2023-24.

STATE Control Centre, which budget papers show cost about $11m a year to run.

EMERGENCY Recovery Victoria (budget not public).

EMERGENCY Management Victoria (budget not public).

EMERGENCY Alert Program – automatic emergency warning SMSs (budget not public).

EMERGENCY Management Operational Communication Program (budget not public).

FOREST Fire Management Victoria (FFMVic) and its support functions within the Department of Energy, Environment and Climate Action (budget not public).

Ms Symes said: “We’re making sure our emergency services have the sustainable funding and equipment they need to keep Victorians safe and to recover from natural disasters.”