Dear East Gippslanders,

Like you, we are devastated by the decision of the Victorian Government to forge ahead with its ill-conceived cash grab: the Emergency Services Volunteers Fund (ESVF) levy.

We’ve been able to influence a temporary reprieve for our farmers as announced on Friday. However, the new tax still fails to consider the impact on rural communities, small businesses, farmers and families.

We are all impacted.

The major tax hike also ignores the impact on Council. The cost alone to administer this extra tax collection is significant, and this ultimately impacts the services we deliver to the community.

This tax will rip millions of dollars out of our community for little local benefit. The tax is not like rates, which are 100% invested back into the community. It must be immediately scrapped, and emergency services properly funded through the State’s general revenue – just like other essential public services.

Six months of fighting

When the new ESVF levy was announced by the Victorian Government in December last year, without consultation with local government, we immediately knew it would have a significant impact statewide. That’s why we were quick to start leading the local government advocacy to MPs, lobby groups and our local government partners.

This has included meetings, conversations and letters to Ministers, local MPs, crossbench MPs, the Municipal Association of Victoria, Rural Councils Victoria, other councils, and the Governor of Victoria’s office.

We’ve had our own sustained media campaign both locally and into regional and metropolitan audiences and collaborated with others on regional campaigns.

We’ve kept our community informed from the outset and listened to our ratepayers and representative and advisory groups.

This work over the past six months hasn’t let up, working both publicly and behind-the-scenes to garner support to stop the money grab from rural communities who are already up against it – difficult season conditions, cost-of-living pressures, a slow economy and the closure of the timber industry.

As the media attention and public displays of protest from all sectors across the state have demonstrated over recent weeks, this tax will hurt us all.

The conversations, phone calls and letters from community members emphasise the disbelief this tax could be forced upon us.

It’s taking a toll on us all. We are in this together.

But we have had some wins. We’ve been able to consistently shine a light on why our community cannot afford this tax, and we’ve influenced a rethink on the amount our farmers are taxed.

What we know

Disappointingly, the Government didn’t read the room when it first considered putting it to Parliament and withdrew due to a lack of support. We worked hard to get the support of crossbench MPs to assist the Coalition in blocking the bill in Parliament.

When the bill was presented in May, there were some minor tweaks but unfortunately those changes did not go far enough. The impact on our communities remained largely the same.

There is limited appreciation by city decision-makers of the impact this tax has on rural people, both financially and emotionally.

Friday’s announcement by the Premier to declare the entire state in drought gives our farmers some reprieve. The drought declaration means the ESVF variable rate on primary production properties will remain at 28.7 – the same as it was in 2024-25 – for the duration of the 2025-26 financial year. This is down from the proposed ESVF variable rate of 71.8 (cents per $1,000 CIV).

This reduced rate will be applied to rates notices for primary production properties automatically.

We welcome this concession from the Premier that the levy was impacting all farmers. However, the concern for the hike in the levy for residential and commercial property owners remains.

It’s step one in having this completely overturned.

“Just don’t pay” – it’s not that simple

We also worked hard on having the levy collected by the State Revenue Office, not Council. Unfortunately, you will see the levy itemised on your rates bill, even though it is not a Council charge.

We have heard the suggestions to “just don’t pay the new tax”. Unfortunately, it’s not that simple.

Councils are obligated to collect the levy and cannot use a separate invoice to collect the levy.

Also, Council must proportionally allocate rates revenue towards the levy if ratepayers choose not to pay the levy element on their rates notice. For example, if your rates are $3,000, and the levy is$500, if the property owner pays only the $3,000 rate component Council collects $2,550 (roughly 85% of payment in this example) and the $450 balance goes off to the Government. We know that will be significantly more for many ratepayers. And your rates notice will still be in arrears.

Unfortunately, ratepayers who refuse to pay the levy may cause financial strain on councils across the state. It may also be subject to Council’s debt collecting processes – something we agree is unfair.

You will hear more from us about the levy prior to receiving your 2025/26 rates notice.

Emergency services volunteers

This money grab is not how our local emergency services operate. Volunteers are the glue that keeps our communities strong.

Unfortunately, this levy is not only inequitable it shows a deep lack of understanding and respect for the role farmers, small businesses and families play in keeping our communities safe in times of need.

There is no guarantee the money taken from East Gippsland will be returned to our region to support local emergency services and disaster preparedness. This is compounded by East Gippsland being one of the most emergency prone areas of the state.

What’s next

We’re not giving up on having the ESVF scrapped. As a Council and broader local government sector, we will continue to work on how we can best support our community. In the meantime, we hope the following suggestions are of some help.

If you are a farmer, commercial businessowner, or have vacant land, talk to your accountant or financial advisor about how you may be able to minimise the impact of the levy.

If you are a CFA or SES volunteer, investigate how you can get the volunteer rebate on your principal place of residence or farm. This rebate is not administered by Council.

If you are experiencing any difficulty in paying your rates, please talk to us as soon as possible. We're here to help.

Let’s stick together and continue to fight for the best outcome for our community. The best outcome is the Emergency Services Volunteers Fund is scrapped in its entirety.

Warm regards,

East Gippsland Shire Councillors

Mayor John White

Deputy Mayor Sonia Buckley

Arthur Allen

Jodie Ashworth

Tom Crook

Barry Davis

Joanne Eastman

Bernie Farquhar

Ian Trevaskis