Fire levy reform call

By Kath Gannaway
MCEWEN MP Fran Bailey is calling for the Fire Services Levy to be tied to local council rates.
The issue of the levy came into focus after the February fires when many homes and properties were found to be uninsured.
“The financial responsibility must be shared by all Victorians,” Ms Bailey said.
“It’s time for an overhaul of a funding model rooted in the 19th century and one that now discriminates against country communities.”
“An overhaul of the Fire Services Levy and attaching it to municipal rates will see all property owners contribute to the protection of our people and our communities,” she said.
In addition to the issue of the non-insured not contributing, the model would address another of the major concerns business owners and householders have with the current model.
Healesville businessman John Stanhope, owner of the Black Spur Nursery said he objected to the government’s double dipping.
“I wouldn’t mind the levy if it didn’t slap a GST and stamp duty on, it’s a tax on a tax and it’s ridiculous.”
Mr Stanhope said of his total bill of $4216.82 the GST represented $352, stamp duty was $345 and the levy was $790.
“There would have to be more investigation done about how the figures would add up if it were put on rates,” he said.
Mario Galteri of Coldstream Timber welcomed the model put forward by Ms Bailey saying it would be more equitable.
He said he was dreading the valuation he was currently waiting for, in view of a huge increase in the levy to more than 80 per cent of the insurance premium.
Mr Galteri said a levy based on rates would ensure everyone contributed towards the CFA.
“You are not just hitting the people who insure,” he said.
Ms Bailey said the change was needed also to make insurance premiums more affordable.
“We need radical change to the Victorian funding model of our fire brigades otherwise more people will struggle to pay hefty increases in their insurance premiums,” she said.
The current levy was, she said, a discriminatory tax on country people and country businesses and no way to fund a modern volunteer fire service.