PRIMARY producers will be hit hardest under proposed emergency service levy hikes that stand to triple if legislation passes through the Victorian parliament.
Comparison figures from the existing to the proposed variable rates have primary producers facing cost rises from 28.7 cents per $1000 capital improved value (CIV) to 83 cents.
It’s a cost that Whitfield cattle farmer and wine grape grower Brett Hennessy believes could force older farmers to call it quits.
Under the Emergency Services and Volunteers Fund, volunteer service men and women will be exempt from paying the tax, however, it flies in the face of older residents who are physically unable to become active volunteers for services such as the CFA and SES.
“We all assumed there would be a rise in the variable levy rate, but a massive hike like this will leave many farmers shaking their heads and seriously questioning their future,” Mr Hennessy said.
“When you’re on the wrong side of 60 do you really feel like jumping on a fire truck and hanging onto a hose.
“To be honest an exemption for fire services is probably something that’s long overdue but the state government's levy increases are unsustainable.”
Farmers with multiple properties that operate as a single enterprise may be eligible to pay a single fixed charge under the single farming enterprise exemption.
However, as it currently stands, the single farm enterprise exemption can only be claimed in respect of one principal place of residence.
Both the fixed and variable components would be levied on any other principal place of residence that is contiguous to farmland forming part of the single farm enterprise.
Emergency service volunteers will also only be exempt from paying the levy on their primary place of residence.
Under the ESVF, the state government will continue the use of councils as the debt collectors for the property tax, something councils across Victoria are up in arms about not having the resources to deal with the extra work it will trigger.
“The cynic in me says well this is just an easy money grab and no one’s going to question the thoroughfare it’s taking by using councils to collect from ratepayers,” Mr Hennessy said.
He said the high rates that rural landholders already pay in rates nowhere near match the services they received from council in return, and now this levy will be an extra cost from the state.
“You are getting diminished services from the Rural City of Wangaratta itself, and trying to get a road graded, or sheeting on a road done is difficult,” he said.
"People out at Carboor had access lanes to their property that were just quagmires last year and we had the same issue in Whitfield.
“You need to drive a tractor up to the laneway to get to another property because you can’t get four-wheel drives through in wintertime.”
Ovens Valley MP Tim McCurdy labeled it as a slap in the face to regional Victorians.
"People in country communities are already doing it tough, and now Labor is piling on even more financial pressure," Mr McCurdy said.
"We need to ensure that every cent raised goes directly to supporting our SES, CFA, and other crucial emergency services—not wasted on bureaucracy."
Commercial and industrial property owners also stand to face hefty increases to the levy.
Increases for commercial are proposed to rise from 66.4 cent/$1000 CIV to 133 cents/$1000 CIV and industrial would rise from 81.1 cents/$1000 CIV to 133 cents/$1000 CIV.
The ESVF will fund up to 87.5 per cent of FRV’s budget, and up to 95 per cent of CFA’s budget.
The Fires Services Property Amendment Bill passed the Legislative Assembly on 20 March and also had its second reading in the Legislative Council.
The state government plans to implement the levy from 1 July this year.