Surprise developments for new levy

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The State Government announced on Friday 30 May, amongst a list of drought-relief measures, that it would pause the implementation of a contentious new levy to fund emergency services.

The Emergency Services and Volunteer Fund (ESVF) Legislation was passed by the Victorian Parliament on Thursday 15 May, amidst vocal opposition from groups including farmers and volunteer firefighters, many of whom rallied in Spring Street against it on State Budget Day. In the past week, momentum gathered against the changes, as local councils also begin to speak out against the legislation, objecting to new obligations it places on them and the projected impact upon residents. On Friday, the State Government released a statement saying that the increased levy will now not apply to primary production properties until the end of the 2026 financial year. The Tarrangower Times has been following the story and chatting to various stakeholders as the story unfolded towards this unexpected pause to one aspect of the ESVF.

Rural residents and councils resist

The legislation requires the new fund to be collected by local councils; the amount payable by property owners is a fixed rate plus a variable rate based on property’s classification and capital improved value.

A number of farmers spoke their mind to the TT [Tarrangower Times] about the issue, with Newstead farmer Tony Butler saying that many people around him are angry that the property classification system seems to unfairly target them. “Rural people, whether they be CFA volunteers, whether they be small business, whether they be townspeople, their rage is white-hot,” Mr Butler said. He said the exclusions included in the legislation do not offer comfort. “The rebates did not go far enough,” he said. “You have to pay it up front then they give you the rebate. This issue has got country people up in arms and the issue is not going away.” Mr Butler and other community voices called for rural councils to step in, which some subsequently did.

While some councils have commenced the process of updating websites to inform ratepayers of impending changes, others made public statements against the new levy.

Central Goldfields Shire Mayor Cr Grace La Vella said on Thursday 29 May that the impact of the ESVF on farming communities is concerning. “While there is no doubt that our first responders deserve better frontline services, vehicles, and facilities, ultimately helping to maintain preparedness and response capabilities, especially given the incredible work they do—this support must not come at the cost of our struggling farmers,” she said.

City of Whittlesea Mayor Cr Martin Taylor also made a statement on Wednesday 28 May outlining numerous concerns with the levy, Hepburn Shire Mayor Cr Don Henderson said in a statement that the ESVF “levy places a disproportionate financial burden on rural and regional communities like ours, particularly on our primary producers,” and said after the government’s pause for farmers: “(Hepburn) Council will continue to advocate for a permanent review of this levy.

Meanwhile, a petition to the Parliament of Victoria requesting a cease to the introduction of the ESVF and a “genuine consultation process” currently has over 38,000 signatures.

Government pause

The State Government responded on Friday 30 May in an announcement called “Expanding Drought Support To Farmers Across Our State,” which included grants of up to $5,000 to support on-farm drought management improvements, in addition to financial counselling and mental health support.

The statement said that due to the dry conditions that are expected to continue into June, all primary production properties will pay a reduced ESVF contribution – capped to the same amount they paid in 2024-25. “This will mean 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. This reduced rate will be applied to rates notices for primary production properties automatically.”

Rural Councils Victoria (RCV) responded to the pause by saying: “The government’s backdown is recognition the spirited community campaign against the levy was effective.” RCV vows to continue its advocacy. “The ESVF is a bad tax that will do great harm to rural communities. We would still like to see its full removal. But delaying its implementation is very welcome.”

Local councillor responds

Mount Alexander Council’s Deputy Mayor, Councillor Toby Heydon — who attended the recent community meeting in Baringhup about the ESVF — welcomed the recent government announcement. “As councillors we’re all very happy that the state government has decided to pause the introduction of this. I would imagine there’s a lot of reasons behind that,” he said, referring to concerns including increased financial pressure for primary producers and the risk that councils could be forced to foot the bill if residents don’t pay the increased ESVF.

“I think every councillor across of the state has heard about this issue; mostly from commercial farmers, less from residential and commercial ratepayers. There’s no doubt that the criticism of the levy has been widely communicated to me, from different farming groups, from the various farming regions across the shire,” Cr Heydon said. He said the community meeting, also attended by Member for Bendigo West Maree Edwards MP and Member for Ripon Martha Haylett MP, was worthwhile and that he expects they provided feedback to Spring Street. “I think community meetings do have a very important impact on government policy. To have local MPs in attendance is crucial. A whole range of meetings across the state would have fed back into that government thinking.”

Cr Heydon said it was important to remember that volunteer emergency services would welcome extra funding. “It is a point worth noting that the fundamental question behind all of this — need to raise more money— is very real. We’re seeing massive increase in call-outs for emergency services, particularly from storms. It’s a difficult question, how do we raise that money?”

Tarrangower Times 6 June 2025

This article appeared in the Tarrangower Times, 6 June 2025.

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