The current Fire Services Property Levy will be replaced by the Emergency Services Volunteer Fund, seeing its rate increase to collect over $2.1 billion more in tax.
Since 2013, the FSPL has funded the CFA and Fire Rescue Victoria through an annual fee collected via council rates.
Revenue raised through the levy funds 77.5 per cent of the CFA’s budget, and 87.5 per cent of FRV’s.
From July next year, the ESVF will finance a larger pool of emergency services and provide up to the same amount the FSPL did for fire services, according to the Department of Treasury and Finance.
For residential property owners, the levy will climb from 8.7 cents per $1000 in a property’s capital improved value to a variable rate of 17.3 per cent.
Commercial and industrial landowners’ rates will rise to 133 per cent, and primary production landowners’ rates will jump from 28.7 per cent to 83 per cent.
New services financed under the ESVF include VICSES, Triple Zero Victoria, the State Control Centre, Forest Fire Management Victoria and Emergency Recovery Victoria.
Emergency Services Minister Jaclyn Symes said an increase in the frequency of natural disasters and population growth had strained emergency volunteers.
VICSES, for example, averaged roughly 20,000 callouts per year between 2009 and 2013, which has increased to around 35,000 per year over the past three years, she said.
“We need to act to ensure these hard-working Victorians are supported now and into the future,” Ms Symes said.
“Every dollar of this new fund will support VICSES, Emergency Management Victoria and other emergency services, as well as the CFA and FRV.”
A $250 million package was also announced for CFA and VICSES fleet replacements, along with increased volunteer emergency service grants and an upgrade to the VicEmergency app.
Active VICSES and CFA volunteers, as well as life members, will be exempt from paying the ESVF levy.
Pensioners, veterans and single farm enterprises will continue to receive concessions under the ESVF.
The announcement of the levy drew criticism from the opposition, with Nationals members raising concerns about the model.
State Member for Murray Plains Peter Walsh said the change was at odds with how emergency services had previously been funded in Victoria.
“The ESVF will see all of Victoria’s emergency services, which are normally allocated funding in the annual state budget, now rely on the new levy to fund up to 95 per cent of their operations,” Mr Walsh said.
He said that enacting a levy increase during a cost-of-living crisis would put further pressure on the price of essential goods and services.
The announcement comes after Triple Zero Victoria, VICSES and the CFA have had their funding reduced by the government over the past two years, Mr Walsh said.
“This money is not going where it belongs, and where it has been promised — to support the irreplaceable work done by our dedicated volunteer firefighters in CFA units across my electorate and the state,” he said.
State Member for Northern Victoria Gaelle Broad said the levy was “robbing Peter to pay Paul”, with ratepayers footing the bill for government services.
“Using a levy to pay for more services means there will be less transparency on where and how money is spent,” Ms Broad said.
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