Controversial levy delayed for farmers

The State Government has decided to freeze the controversial Emergency Services Volunteer Levy for two years.

In a mid-year budget review on Friday, the government announced changes to the controversial ESVF, including a freeze on the levy with no increase to the variable rate for primary production land, an increase to the volunteer rebate cap for farmland from $5 million to $10 million CIV and a delay to the change for investment properties by 12 months.

The announcement was welcomed by Victorian Farmers Federation president Brett Hosking who said it was a huge relief for farmers. "This tax was set to rip hundreds of millions out of the pockets of cash-strapped farmers in the middle of a record-breaking drought."

In May, rural communities across the state lashed out against the government's original levy hike, which proposed to slug farmers at a rate 180 per cent more than last year's levy.

Mr Hosking said Victorian farmers made it clear the ESVL was their number one issue and the VFF had been "moving heaven and earth" to get to Friday's decision.
"Freezing the levy and increasing the exemption threshold acknowledges the massive pressure farmers have been under."

However, he said it could not be the end of the conversation.
"A pause is great, but we need a permanent and fair and equitable funding model that reflects modern realities and doesn't continue to load disproportionate costs onto property owners."

"It must be a sustainable system that moving emergency services funding back into consolidated revenue and doesn't push that burden onto farmers and landholders," he said.

"Before next year's election, we need a firm commitment on what the process will look like to work in partnership with farmers to deliver a long-term funding solution, one that supports farmers, volunteers, strengthens emergency service capability, and treats all Victorians fairly," Mr Hosking said.
Two days later, the State Government announced it was pausing the proposed rate increase for all primary production properties.