General News
3 April, 2025
Fire levy to strip $2m-$3m from Hindmarsh
A new Emergency Services and Volunteers Fund (ESVF) will cost Hindmarsh Shire ratepayers as much as $3 million, mayor Cr Ron Ismay says.
As rural municipalities across Victoria speak out against the introduction of the ESVF, Hindmarsh has voiced its own concerns.
Cr Ismay said on Monday council was "very disappointed that the state government has introduced the new fund without consultation while capping council at a 3 per cent rates increase for 2025–26".
"For comparison, the 3 per cent rates increase to Hindmarsh is approximately $250,000, which will cover our insurance premium increases and not a lot more, while the ESVF will generate for the state government between $2 million and $3m additional from Hindmarsh alone.
"Multiply these figures by 38 rural councils across the state and the sum becomes $76m-$118m.”
Cr Ismay said the decision was announced in December, when the government revealed that the new levy would take effect on July 1 this year.
"The fees are set by the state government, collected by councils and paid back to the state government, including any interest accumulated," he said.
"Indicative figures on the variable rate suggest that the levy may be more than double the (previous) Fire Services Property Levy for some ratepayers."
Cr Ismay said information provided showed that for some farming properties in Hindmarsh, the average increase would be approximately 164 per cent.
"The average increase for commercial properties will be approximately 35 per cent and residential properties' average increase will be approximately 16 per cent," he said.
“Council is not saying that funding the emergency services isn’t important, but the way it has been introduced has been appalling and the burden of the increase is predominately on our rural communities, meaning that money is taken away from our community and not spent locally."
Cr Ismay said active emergency services volunteers and life members could be eligible for a rebate on the ESVF on their primary place of residence, if the property was registered in their personal name.
"Council has been advised that the rebate will likely be administered by the state government,” he said.
Cr Ismay said that from an operational perspective, council was seeking assurance from the state government that the administrative costs for collecting this levy on its behalf had been considered.
"The work involved in collecting and administering this levy will divert council resources away from things that matter to our community: services, road maintenance and projects that form the basis of our council plan," he said.
Further information is on the Department of Treasury and Finance website, https://www.dtf.vic.gov.au/emergency-services-and-volunteers-fund