Contentious legislation to raise an extra $2.1 billion for emergency services is set to pass with last-minute funding guarantees and rebates for drought-hit farmers.
Ahead of delivering her first state budget next week, Victorian Treasurer Jaclyn Symes on Thursday 15 May unveiled a raft of amendments to the Emergency Services and Volunteers Fund bill.
The fund would replace the Fire Services Property Levy from 1 July and expand coverage to other emergency and disaster response services.
It was projected to lift the average annual bill for residential home owners by $63 and $678 for primary producers, sparking backlash from some farmers and firefighters.
Needing to woo upper house crossbenchers to pass the bill, the Labor government has agreed to reduce the rate for primary production land.
It would save the average farmer $3 a week, Ms Symes said.
Partial rebates will also be available for farmers eligible for a state drought support package, on top of previously confirmed rebates for eligible State Emergency Service and Country Fire Authority volunteers and life members.
The legislation will explicitly guarantee 95 per cent of SES and CFA’s annual funding will be drawn from the levy, and 90 per cent of Fire Rescue Victoria’s.
How the money is spent will be reported annually and the government has already earmarked $110 million for a SES, CFA and FRV rolling fleet replacement program.
“Obviously it’s a new cost – no one likes paying more,” Ms Symes told reporters at state parliament.
Debate on the bill has resumed in the upper house and it is expected to pass parliament later on Thursday.
The expanded levy was originally forecast to raise an extra $2.14 billion over the next three financial years, but the changes will likely lessen the tax take.
Ms Symes said she was waiting for revised figures but bristled when asked if it would eat into the state’s projected surplus of $1.6 billion for 2025/26.
“I’m good mate,” she quipped.
The original levy had serious problems but the amendments would address concerns raised by farmers and firefighters, Victorian Greens leader Ellen Sandell said.
“With increased bushfires, floods and droughts, we need fully funded emergency services to keep us all safe, so we don’t face a horrific situation like the Los Angeles fires,” she said
United Firefighters Union secretary Peter Marshall accused Labor, the Greens, Animal Justice and Legalise Cannabis parties of “selling out” Victorians.
“It’s all about retiring this government’s debt,” he said.
“Have your little fun today, do your dirty deals, I guarantee you, we will make you accountable.”
Mr Marshall said the militant union would reconsider its support for the minor parties ahead of the next election in November 2026.
Victorian Nationals leader Danny O’Brien agreed the levy was mainly about digging the government out of a financial hole instead of better funding emergency services.
“This is a great new big tax and all Victorians are going to have to pay,” he said.
The latest forecast from December showed Victoria’s net debt was expected to climb to $187.3 billion by mid-2028, pushing up interest repayments to $9.32 billion a year.
