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Summary

The new Victorian Emergency Services and Volunteers Fund (ESVF) is a complex issue with potential benefits and drawbacks for the community.  The ESVF aims to increase funding for emergency services, but there are concerns warranting careful consideration, including:  

  • its impact on rural communities and A primary producer can be an individual, partnership, trust or company operating a primary production business if they undertake: plant or animal cultivation, including domestic animal breeding (or all of these), fishing or pearling (or both), tree farming or felling (or both).primary producers 
  • limited and poor consultation prior to its proposal;  
  • the lack of specific guarantees regarding how the funds will be used; and  
  • the actual cost increases.

The ESVF is a new A levy is a tax or fee collected by the government or an organisation, usually to fund a specific purpose.levy replacing the An annual levy which property owners pay through council rates, used to support emergency services.Fire Services Property Levy (FSPL). It aims to provide more funding for emergency services, including the Country Fire Authority (CFA), Victorian State Emergency Service (VICSES), and other related services.  

The ESVF was expected to be implemented starting July 1st, 2025.  On May 30th, the Victorian Government announced a temporary cap on the ESVF levy for the coming financial year, capping the amount at the 2024/25 wait. 

The ESVF represents a significant increase in costs (collected as part of council rates notice) for many regional Victorians, particularly rural property owners and primary producers, with potential negative impacts on local economies and community mental health.  

While the new levy is intended to increase funding for emergency services, concerns have been raised about its fairness and potential consequences for those who will bear the brunt of the increase. The new levy disproportionately affects rural communities and primary producers, who are already facing financial pressures from factors like drought and the cost-of-living crisis. Additionally, a greater number of farmers and rural communities also make up a greater proportion of Volunteers in services like SES and CFA.  

As the climate changes, the storms, fires and floods that impact our environment and communities are more frequent and more severe. As a result, the need to do more in responding to disasters, keep pace with equipment upgrades, and keep our emergency services up to date, trained and skilled to the changing needs of our communities to ensure appropriate responses are also needed. All this will require a greater amount of funding, now and into the future.  

By way of example, between 2009 and 2013, Victoria State Emergency Service (VicSES) averaged roughly 20,000 callouts a year. Over the last three years, they’ve averaged about 35,000. 

Why is this issue important for young people?

Many young people develop important new skills when they join an emergency response organisation like SES, CFA or SLS. These organisations are also an important place to meet and socialise with peers.  

In times of disaster, including times of drought, when families and communities are stressed and disconnected, and resources are channelled to dealing with disaster relief and recovery, it can often be the young people of the community whose needs are sidelined, often at a crucial stage in adolescent development that can never be revisited.  

Many young people will be required to step up their responsibility to their families, to the farm or family business and will also feel that they cannot voice their normal adolescent / early adult concerns in the context of a disaster environment when everyone’s needs are so dire. Their connections to peers and support networks are often significantly compromised by transport and communication outages which can compound feelings of disconnection, loss of control and mental health issues. The opportunities for them to socialise with peers are also often not prioritised. 

There is also a risk that more young people will leave their communities and not return because they have been displaced or to search for jobs. Young people from farming and small business backgrounds have identities that are linked to their family’s business, and expectations that they will continue that legacy. If the property or business is destroyed, or servely impacted by the disaster, their livelihood, expectations and plans for their future may also be destroyed. In addition, young people may be expected to leave school to help on the farm or in the business, or there may be no money to send young people to boarding school which may also destroy chances of getting into university.

How is the ESVF calculated?

The ESVF is made up of two parts: a fixed charge that depends on the type of property, and a variable charge based on how much the property is worth. The total levy is calculated by adding the fixed and variable charges and then subtracting any eligible concessions. 

For example, in 2024-25 the residential fixed charge was $132, and the non-residential fixed charge was $267; this will increase by $4 and $9 respectively for the 2025/26 financial year. 

The variable rate of the levy is concerning for many rural and regional communities. This is because the government plans to increase the variable rates to collect more money for emergency services, instead of funding these services through general revenue. 
 
The variable charge is based on a property’s value, known as the Capital Improved Value (CIV) and a variable rate depending on the property’s classification.  
The variable charge is based on a property’s value, known as the Capital Improved Value (CIV) and a variable rate depending on the property’s classification. The higher the property value, the higher the charge. 

The variable rate will more than double under new legislation, from 8.7% (cents per $1000 CIV) up to 17.3% for homes (a Principal Place of Residence (PPR)) and non-PPR residential properties. 

You can read more about how the ESVF rates are calculated, or find an estimate for your property’s ESVF rates. 

What services will the ESVF levy fund?

The previous FSPL funded only 87.5% of Fire Rescue Victoria (FRV) and 77.5 % of Country Fire Authority’s (CFA) annual budget.  

The new ESVF levy will fund between 90-95% of:  

  • Country Fire Authority (CFA): The primary body responsible for fighting bushfires and other major fires in the state.  

  • State Emergency Service (VICSES): Provides emergency response for floods, storms, and other natural disasters. 

  • Triple Zero (Emergency Services Call Centre): The call centre that connects people to emergency services. 

  • State Control Centre: The central hub for coordinating emergency responses. 

  • Forest Fire Management Victoria: Focuses on managing forest fires to prevent and control them. 

  • Emergency Recovery Victoria: (previously Fire Recovery Vic) Supports communities affected by natural disasters or emergencies. 

  • Other emergency services: The levy will also fund other emergency services and support programs.  

 

What is the ESFV levy attempting to achieve? 

By investing in emergency services, the ESVF aims to enhance the safety and resilience of Victorian communities in the face of emergencies and disasters.  

It aims to do this through: 

  • Increased funding for emergency services resources, allowing them to better respond to incidents and serve the community. 
  • Enhanced preparedness and response through improvements in equipment, training, and technology, leading to more effective emergency responses. 
  • Supporting the work of emergency services volunteers, who play a vital role in many situations. 

What are the concerns? 

The ESVF is expected to increase costs for many, with rural properties facing an up to 90% increase overall. 

A range of community stakeholders, including Local Councils, are openly opposing the levy, with concerns about the administration burden and proposed increase from the previous levy, pointing out that farming communities- especially primary producers- will be hit hardest because of the way the levy is applied.  

Many are concerned that the levy will have major cost impacts for residents and regional communities, increased costs for Council to administer the levy as the designated collection agency under the new levy system. The change will also see Council incur increased costs to alter rates notices and implement the system changes needed to administer the more complex program. 

The financial stress associated with the new levy is a significant concern, particularly in rural areas where farmers are already struggling with drought and other challenges, potentially leading to increased stress and mental health issues. This impact is especially felt by young people who are part of faring and primary producing families and communities. We know young people often take on these stresses silently and don't want to voice their opinion because they don't want to add to the burden felt by their family and community. 
 

Additional key considerations for concern include:
  • Increased cost for landholders, as the ESVF will be charged alongside council rates, and all landholders in Victoria will pay more.  
  • Significant increase in levy resulting in financial burden on farmers, who are already feeling the impact of increased costs from disasters. 
  • Concerns about fairness, as the levy is based on land ownership rather than property value or income.  
  • Impact on Local Economies, as the increased levy will reduce funds available for local businesses and community initiatives, leading to job losses and economic hardship.   
  • Potential impact on the cost of living, as the ESVF could add to the overall cost of living for Victorians, especially those already struggling with high inflation. 
  • Concerns about the lack of specific funding guarantees regarding how and where the additional funds will be allocated.  
 

We need to extend funding to services including the State Emergency Service (SES), and Emergency Recovery Victoria, Triple Zero and the State Control Centre, which were previously funded from general revenue. It also raises the question of where that money is now going if not on responding to emergency services. 

Alternative funding mechanisms should be considered, such as a payroll tax or a GST increase, rather than imposing a new tax on landholders or taxing big polluters and fossil fuel companies as disasters are now clearly linked to changes in climate. 

Community stakeholders, especially young people, should be consulted and part of reviews. 

Exemptions and Rebates to the ESFV  

CFA and VICSES volunteers and life members will be entitled to a rebate on the ESVF on their A person's main home, which they occupy/live in on an ongoing basis.. principal place of residence (PPR) or farm, which will be administered by the State Government through the Department of Government Services, they will have to pay it for any other properties they own. 
 
Eligible volunteers include all active VICSES and CFA operational and support volunteers. To be eligible for the rebate, volunteers will need to have: 

  • served for at least 12 months,  
  • passed probation,  
  • and not be suspended on disciplinary grounds or have taken a leave of absence for the entire duration of the preceding 12 months. 

Pensioners, veterans and single farm enterprises will continue to receive concessions.  

Some farmers in drought-affected areas will be eligible for a rebate.  

An additional partial rebate of the ESVF for farmers eligible for the infrastructure grants program in the Government’s drought support package. 

The infrastructure grants program, On-Farm Drought Infrastructure Grants, provides practical support to farmers impacted by drought in Victoria. The program supports on-farm upgrades that provide immediate support in managing drought and build future resilience. 

A full list of eligible LGA’s can be found at the end of the article, or for more details on drought support visit  Agriculture Victoria website.