MANSFIELD Shire Council has taken a firm stance against the state government's proposed Emergency Services Volunteers Fund (ESVF).
The fund will replace the current Fire Services Property Levy from 1 July 2025.
The change will see the tax double from 8.7 per cent to 17.3 per cent per $1000 of capital improved value (CIV), placing a significant financial burden on rural ratepayers.
The Fire Services Property Amendment Bill, read in parliament this week, has raised widespread concerns, particularly among regional councils.
Mansfield Mayor Cr Steve Rabie said the council is strongly opposed to the tax and its impact on the community.
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“We do not agree with the proposed tax, which would see a massive increase in household costs to our community,” Cr Rabie said.
“It’s unfair to everyone in the state – to all the people who will have the cost of food production passed down via their grocery bills.
"But it’s most unfair to the communities in regional rural areas.”
Cr Rabie highlighted Mansfield Shire’s efforts to keep rates low, with an average rate rise of just 1.75 per cent over the past four years — one of the lowest increases across Victoria.
“We carefully consider every rate rise," he said.
"We don’t just apply the maximum set by the state, even though that doesn’t even match CPI increases.
"While the cost of doing business for local government is increasing, we have actively reduced our costs in every way we can to reduce costs for ratepayers."
"Council has also made structural changes to reduce financial pressures on residents, such as bringing services in-house to cut consultant and contractor costs and revising special rates and charges for infrastructure projects.
“But now, we’re going to have to be the ones to ask our community members to fork out to pay a tax we don’t agree with.
"It’s going to be on the rates notice.
“We don’t think it’s fair that we’re the ones being asked to put it on the rates notice – we should not be the tax collector for the state government.”
Council unanimously voted against the tax and is joining other rural councils in calling for a review of both the levy and the state government's expectation that local councils collect it.
The Municipal Association of Victoria (MAV), Victoria’s peak council advocacy body, has echoed Mansfield's concerns.
MAV President Cr Jennifer Anderson said rural councils are bracing for the impact of the levy increase.
“Many councils across Victoria have already raised council motions about their council collecting this levy on behalf of the state government and concerns about the cost impact on residents,” she said.
“The MAV is also concerned about the cost shock likely to impact rural residents, with many rural councils modelling significant increases to ratepayers on agricultural land classified for primary production.”
Cr Anderson also noted that councils across Victoria already contribute to emergency services through support for VICSES units and CFA brigades.
She argued that the additional financial burden of administering the levy should not fall on local governments.
“While councils have been collecting the Fire Services Levy for the state government through rates notices for more than a decade, this new, expanded Emergency Services and Volunteer Fund set to commence on 1 July 2025 is more complicated for councils to implement through rates notices in a short timeframe,” she said.
“Councils across the state have indicated that they are not able to reliably implement these proposed changes to the expanded state levy on 1 July 2025 and require funding from the state government to ensure that every local government is equipped with the IT, communication, and human resources required to implement this expanded state levy.”
The MAV has committed to working with the state government on finding a solution but remains firm that the levy should be communicated and administered by the state, not local governments.
“We want to make it very clear that this is a state levy, and the state government needs to communicate the benefits of this expanded emergency services levy to ratepayers across the state,” Cr Anderson said.
Mansfield Shire Council and other rural municipalities will continue to push for a review of the tax, arguing that it unfairly burdens regional communities and places an undue administrative strain on local councils.
