Council Strongly Opposes Emergency Services Volunteer Fund Levy

Published on 26 February 2025

Southern Grampians Shire Council is calling on the State Government to urgently reconsider the implementation of the Emergency Services Volunteer Fund Levy (ESVFL) which replaces the Fire Services Levy from July this year. 

Council fully supports emergency services and recognises the invaluable contributions of volunteers. However, the new ESVFL in its current form is inequitable and unsustainable. The levy operates as a state-imposed tax, which Council will now be required to collect through rates.  

Southern Grampians Shire Council Mayor Dennis Heslin says this levy is an unfair cost shift onto rural communities already struggling with economic challenges. 

"Councils are being forced to collect a tax that disproportionately impacts our residents, at a time when cost-of-living pressures are already severe. 

“Based on the data currently available from the state, for residential properties in Southern Grampians Shire, the charge will increase rate bills by over 20% on average and for farming land the average property charges will more than double,” Continued Cr Heslin. 

The ESVFL is set to extract $7.8 million from the Southern Grampians community alone, more than doubling the amount collected under the previous Fire Services Property Levy (FSPL). This increase of $4 million represents an unjust burden on ratepayers, many of whom are already dealing with financial strain due to rising costs, recent bushfires, and ongoing drought conditions.  This is in addition to the significant rises in the Fire Services Property Levy over the last two years.  

“Our residents are already facing immense financial pressures, and this new levy will only make matters worse. Some ratepayers will see their fire services levy double overnight. This is an inequitable and unjust policy that could lead to job losses and further economic hardship in our region," Cr Heslin added. 

Council already operates with constrained resources, and the requirement to administer this levy places additional strain on local government operations. The increased administrative workload, including system changes, compliance requirements, and financial management, is an unfair expectation on local government without appropriate compensation. 

"If councils are to collect this levy, the State Government should provide adequate compensation for the cost of administration. Alternatively, the levy should be collected directly by the State, as is done with other taxes such as land tax,” said Cr Heslin. 

The State Government’s failure to properly consult with councils and communities before implementing this levy has further eroded trust in the process. Many residents remain unaware of how the funds will be allocated, leading to widespread confusion and frustration. 

“Councils are not the beneficiaries of this levy, yet we are being positioned as tax collectors for the State. The Government must clearly communicate where this money is going and how it will directly support our emergency services and volunteers,” Cr Heslin stated. 

Southern Grampians Shire Council is calling on the State Government to reassess the funding model. 

“We’re calling on the State Government to ensure this new levy is fair and does not disproportionately impact rural communities. We also implore the State Government to reconsider collecting this levy themselves, rather than shifting this burden to Council’s to collect.

The State Government also needs to implement a clear and transparent communication strategy regarding the levy’s purpose and allocation,” Cr Heslin concluded. 

Southern Grampians Shire Council stands ready to work with the State Government to develop a more equitable and sustainable approach to funding emergency services. However, the current model is unacceptable and must be urgently reviewed.