Six regional Victorian councils are questioning the feasibility of the state government's emergency services fund, with some labelling it "a tax" on ratepayers.
The Emergency Services and Volunteers Fund (ESVF), which begins in July and replaces the current Fire Services Property Levy, is designed to support a broader range of emergency services and is collected through local councils.
However, the variable rate at which the levy is calculated is more than double in most instances, with some councils arguing regional Victorians will be disproportionately impacted.
A new fund that is being used to support emergency services is being criticised by Victorian councils. (ABC News: Julia Bergin)
Active emergency services volunteers and life members will not have to pay the ESVF on their primary place of residence.
Some councils across Victoria will use their first council meetings of the year to question the fund, which is expected to raise at least $2 million in additional property tax revenue at many councils.
Mansfield, Indigo, East Gippsland, Corangamite, Glenelg, and South Gippsland are among the councils calling on the Victorian government to revise the ESVF, with some meeting to discuss the issue on Tuesday night.
Mansfield mayor, Steve Rabie, says Mansfield is growing at an unprecedented rate. (ABC Goulburn Murray: Erin Somerville)
"We do not agree with the proposed massive increases which will affect every Victorian, but being most unfair to the regional rural areas," Mansfield Shire Council Mayor Steve Rabie said.
"We do not support the collection of this new tax because that's what it really is, it's a tax.
"We are opposed to having this shift and the reputational and administrative shift over to local government by asking us to collect it."
Councils labelled 'collecting agencies'
There are concerns around how councils will fund the new levy collection.
The Indigo Shire Council in north-east Victoria said it received about $50,000 from the state government annually to collect the existing levy.
In its council agenda, the shire raised concerns about having more appropriate financial support for the collection of the new ESVF.
Victoria's State Emergency Service will be supported through the new fund. (ABC News)
Councils are worried about the increased ESVF workload of identifying active emergency service volunteers or life members, identifying primary place of residence, and addressing the expected increase in objections, rates debtors and IT system changes.
"Whilst I acknowledge the importance of adequate funding for emergency services, I do not agree that councils should be the 'collecting agency' for statewide taxes," Glenelg Council chief executive Helen Havercroft reported to her council, which will be meeting to discuss the issue on Tuesday night.
"Local councils, through their property rating systems, are currently tasked with collecting over $839.5 million annually in state levies, which creates significant administrative complexity, and diverts resources from essential local government functions.
"This responsibility, particularly as it applies to a statewide tax such as the Emergency Services and Volunteer Fund, places an undue burden on councils."
Bang for buck uncertainty
Councils are also concerned about not getting value for money, despite ratepayers forking out more.
The Indigo Shire Council will discuss the fund at its first 2025 council meeting. (ABC News: Erin Somerville)
"No details could be found to clarify what proportion of the funds raised will be spent on existing state government services … and how much will be spent on volunteer organisations such as the CFA and SES," a council report to the Indigo Shire Council's Tuesday night meeting noted.
"In addition, no information could be found to clarify the level of support that rural areas can expect from the increased revenue, compared to metropolitan and centralised services."
South Gippsland Shire councillors resolved last week to write to the state government to formally object to the push to have councils collect the new fund.
Nathan Hersey warns farmers will be hard hit by the fund. (Supplied: Karli Duckett)
South Gippsland Shire has more registered agricultural businesses than any other local government area, and Councillor Nathan Hersey said the levy would hit farmers the hardest.
"This is a very significant tax that's going to impact rural and regional communities a lot more than other areas of the state. All properties in South Gippsland will be affected but our farmers will be disproportionately impacted."
He predicted there would be a rise in the number of families experiencing hardship due to the increased cost on their rates bill.
The state government has been contacted for comment.
