THE Latrobe City Council is the latest Gippsland council to join the campaign against local government doing the State Government’s dirty work.
At its council meeting on February 24, the Latrobe Council voted unanimously to support a motion which mirrors the one passed by South Gippsland on February 19 calling on the Premier Jacinta Allan and Local Government Minister Nick Staikos to release local government from the responsibility for the fire services levy.
“That the Mayor, on behalf of Council, write to the Premier of Victoria and the Minister for Local Government requesting the State Government remove the requirement for Victorian Councils to collect the newly announced State Government Emergency Services and Volunteers Fund, with the collection of this fund to be managed directly by the State Revenue Office to ensure a more streamlined and efficient process for all parties involved.”
They have followed Bass Coast and South Gippsland councils which voted on February 19 to also write the Minister, in South Gippsland’s case, and raise the issue through the Municipal Association of Victoria in Bass Coast’s case.
But, the State Government has now moved to outflank the objections raised by local government that the new levy will be too complicated to administer because they won’t know which ratepayers are exempt as emergency service volunteers and which are not.
The government has taken that out of their hands.
In an announcement made on Thursday this week, March 6, by the State Treasurer Jaclyn Symes and Minister for Emergency Services Vicki Ward, councils will hit everyone with the new tax on their rate notices and leave it up to the individuals to claim it back.
After consultation with councils and emergency services, the Labor Government has announced it will:
· Simplify the administration of the fund for councils by introducing a rebate system for eligible volunteers and life members from the CFA and VICSES
· Allow eligible volunteers to claim the rebate against a farm of which they are an owner, even if it isn’t their principal place of residence – making it fairer for farmers who don’t live on their farm
· Allow the rebate to apply across a range of farm ownership structures – including trusts and companies, and farm businesses with separately titled land, with a full exemption available for farms valued at up to $5 million
· Provide additional funding to support councils in the implementation of the fund.
The announcement has effectively put paid local government objections about complexity and they’ll still have to include the levy on their rates notices, with South Gippsland Council revealing recently that their ratepayers will lose an additional $52 million this coming year alone.
At its meeting on February 19, Bass Coast urged other council’s to object to collecting the levy which will expand by a whopping $616 million in 2025-26 to $1.649 billion.
They voted to put the following motion to the Municipal Association of Victoria State Council on May 16:
“The Municipal Association of Victoria calls on the State Government to assume direct responsibility for collecting the Emergency Services and Volunteers Fund (ESVF), ensuring a more streamlined and efficient process for all stakeholders.”
And while councils’ opposition appears to have been outflanked, the State Opposition has weighed in with its concerns saying “the devil is in the detail”.
In a joint statement this week, the Nationals’ leader Danny O’Brien and Shadow Treasurer, the Liberals James Newbury have acknowledged the dramatic increase in the tax and the likelihood that local councils will cop a “massive” backlash.
“Under the tax, households are set to be slugged on average an extra $60 a year. Commercial, industrial and primary production landowners face increases of 100 per cent, 64 per cent, and 189 per cent more respectively,” said Shadow Minister for Emergency Services, Danny O’Brien.
He said he was not surprised councils are already being inundated with complaints.
“Reality is quickly sinking in that this tax is a stinker for both ratepayers and councils,” Mr O’Brien said.
But worse still comes the news that the levy is being squandered by Fire Rescue Victoria which cost 22 per cent more to operate last year, despite failing to meet response times.
According to Mr O’Brien, the Fire Rescue Victoria (FRV) annual report released this week shows total grants from State Government have grown to $1.07 billion, an increase of $192 million or 22 per cent.
“This funding currently comes from the Fire Services Property Levy paid by all Victorian ratepayers and is forecast to increase under the proposed new Emergency Services and Volunteer Fund.
“Employee expenses have risen by $41.2 million and overtime by more than $20 million to a staggering $125 million,” said Mr O’Brien.
“Despite the increased funding from all Victorians, FRV remained $104 million in deficit.
Mr O'Brien said Victorians were paying more and getting less.
“FRV has missed its response time target for structure fires and other incidents and yet we are all paying more,” said Mr O’Brien.
“This comes at the same time that the CFA's budget has been reduced consistently over the last four years, including by $2.2 million last financial year.
“FRV spent a staggering $32 million on consultancies, much of it related to a cyber-attack in 2022, with $27,364 allocated to annual report design concepts and artwork.”