MORNINGTON Peninsula Shire councillors have taken aim at their role as “revenue collectors” for the state government’s emergency services fund levy, which is expected to rake in $51.1 million from ratepayers next financial year.
Councillors will call for a full review including on the financial impact of the new Emergency Services and Volunteers Fund (ESVF), which begins in July, replacing the current Fire Services Property Levy.
All revenue raised from the fund, which is collected through councils across Victoria via rates notices, will go towards 87.5 per cent of Fire Rescue Victoria and 77.5 per cent of Country Fire Authority’s annual budget.
But Cr David Gill successfully moved a motion at the shire’s 25 February meeting arguing that while there was “no debating that fire services are needed”, increases in the levy would put additional pressure on ratepayers, small businesses and farmers as the region grappled with the costs of living. “It’s been increased without any regard for our community or other communities in terms of the cost escalation and the effect on cost of living,” he said, adding it was “extraordinary” that “the fire levy is going to bring in more income than our rates”.
According to a shire report, owners of a commercial property with an average capital improved value (CIV) of $1,479,319 would pay $2443 in the 2025/26 financial year – an increase of $994, while an owner of a primary production property with a CIV average value of $4,330,352 would stump up $3870 – up $2360.
And a residential owner would pay an extra $110 – an increase from $239 to $350 for a property CIV average value of $1,234,614.
Overall, the shire tipped it would have to collect a total of $51.5 million for 2025/26, assuming no change in CIV, meaning property owners would be paying an additional $19.1 million – up from $32.4 million in 2024/25.
Deputy mayor Cr Paul Pingiaro, among other councillors, labelled the levy as a “tax” on the community and fully supported the council’s investigation, which “demands transparency from the state and explores all avenues to protect our ratepayers”. “This tax is not a council charge, yet we are being forced to collect it on behalf of the state while shouldering the administrative burden of facing public backlash,” he said.
“The ESVF disproportionately impacts farmers, small businesses and rural landholders who will now be hit with substantial cost increases without any consideration for the peninsula’s agricultural economy or conservation efforts.” Under the ESVF, variable rates will increase to raise additional revenue to fund the services.
Boneo beef cattle farmer Simon Stuart said while it would be a lot to pay on his property, he wondered how much of the fund, if any, went back into local volunteer emergency services. “I’m ok with increased levies if the money goes straight into services – if the CFA is getting it that’s one thing, but it’s just going into the general fund and the CFA don’t see an increase then it’s basically a tax for Victorians.”
Red Hill CFA brigade captain Sam Norris said he too hoped volunteer brigades benefitted from any levy increase, noting the state government currently provided $1500 per year to their brigade including vehicle maintenance, with all other vital costs raised through community funding.
“I would like to see a spreadsheet of where (the levy) is going – everyone does. If the levy was increasing and they were going to build another 45 fire trucks and increase fire prevention then that’s great, but if not, no one sees where it goes.” “You’ll never get those answers but that’s what people want to know. When you drive around and see grass a metre high everywhere, where’s the money gone?”
According to the state government, “every dollar raised through the ESVF will go towards vital life-saving equipment, vehicles, staff, training for volunteers, community education, and recovery support for when Victorians need it most”.
Active emergency service volunteers and life members will be exempt from paying the levy on their primary place of residence, but the shire’s report noted that it would “face significant challenges in administering this exemption, as it lacks access to data on eligible volunteers”.
The council would also “need to establish a resource-intensive process for verification, ongoing compliance, and coordination with emergency service agencies”. Pensioners, veterans and single farm enterprises would continue to receive concessions.
Councillors voted unanimously in support of the motion which will see council officers conduct a full review of the historical increases in relation to the levy over the past ten years and the “potential financial impact” of the new levy. They will also express concern “that this is not a local government charge but rather the state using councils to collect revenue without considering the implications on council and its ratepayers”.
Mayor Cr Anthony Marsh said the levy appearing on rates notices created unnecessary confusion for ratepayers and made clear that it’s “simply not our revenue”. “It is unbelievable that such a massive increase would be put on the levy … and it’s collected by councils,” he said. “I hope that when we go through our budget process that we put a nice big red border around that saying this is a state charge because people obviously do think the council is collecting and that goes into council coffers and wonder why we can’t deliver more because of the ever-increasing costs.”
First published in the Mornington News – 4 February 2025
