Soaring farm values wipe out many FSPL gains

A 17 per cent cut in Victoria’s fire services property levy has created winners and losers, depending on where you live. See how it will impact you.

The Victorian Farmers Federation want Treasurer Tim Pallas to examine the feasibility of capping the fire services property levy on a per hectare basis.

The inequity of Victoria’s fire services property levy has been exposed in an analysis showing that while some farmers will pay 30 per cent less to fund the CFA and FRV in 2022-23, others will pay 30 per cent more.

Treasurer Tim Pallas has cut the FSPL rate for primary producers, from 20.5 cents per $1000 of their properties’ capital improve value for 2021-22, to 17c/$1000 of CIV for 2022-23, while lifting the fixed charge component from $233 of $238.

But The Weekly Times analysis of the 17 per cent FSPL rate cut shows it is more than offset by skyrocketing land values in many shires.

Moorabool Shire farmers face a 32 per cent hike in the FSPL on their rate bills to the fund Victoria’s fire services on the back of a 59 per cent surge in its farm valuations.

The council’s draft budget valued its farms at $1.2 billion this financial year, rising to $1.93 billion for 2022-23, pushing up rural rate revenue by 22.1 per cent.

In contrast Yarra Ranges Council’s year-on-year farmland valuations have fallen, from almost $2.5 billion in 2020-21 to $2.1 billion for 2022-23, cutting farmers’ FSPL costs by 30 per cent and their rates by 0.1 per cent.

But nowhere is the inequity of the FSPL more stark than in the Campaspe and Glenelg Shires.

Campaspe Shire’s year-on-year farm land valuations are relatively stable at $2.5 billion, with the FSPL falling in line with the government’s 17 per cent cut from July 1.

Meanwhile Glenelg Shire’s draft budget shows its year-on-year farm valuations have soared from $2.73 billion this financial year to $3.75 billion for 2022-23, lifting the FSPL by about 14 per cent and farm rate revenue by 22.2 per cent.

The huge variances have led the Victorian Farmers Federation to call for a review into the FSPL, which president Emma Germano said should look at “the feasibility of the levy being capped on a per hectare basis, or for each council area like the rate cap”.

“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.”

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

Treasurer Tim Pallas’ office said the levy was “set at appropriate levels according to land use”.