Overview
The Emergency Services and Volunteer Fund (ESVF) is a new property tax that will replace the existing Fire Services Property Levy (FSPL) in Victoria starting July 1, 2025. The Victorian Parliament passed the legislation last week, and it represents a significant increase in property taxes for Victorian landowners.
Background and Implementation
- The ESVF replaces the Fire Services Property Levy (FSPL) which was instituted in 2013 following a recommendation of the Bushfire Royal Commission
- The Victorian Government announced the change in December 2024
- The legislation was passed by Parliament in May 2025
- Implementation begins July 1, 2025
- The tax will be collected by local councils through rates notices, similar to the current FSPL
Expanded Scope
The ESVF significantly expands the services funded beyond the current FSPL:
Current FSPL funds:
- Fire Rescue Victoria (FRV) – 87.5% of its budget
- Country Fire Authority (CFA) – 77.5% of its budget
New ESVF will fund:
- Fire Rescue Victoria (FRV) – 90% of its budget
- Country Fire Authority (CFA) – 95% of its budget
- Victoria State Emergency Service (VICSES) – 95% of its budget
- Triple Zero Victoria
- State Control Centre
- Emergency Recovery Victoria
- Emergency Management Victoria
- Emergency Alert Program
- Emergency Management Operational Communication Program
- Forest Fire Management Victoria (FFMVic)
Tax Structure and Rates
The ESVF, like the FSPL, consists of:
- A fixed charge that varies by property type
- A variable charge based on property value
Rate Increases
The variable rates will increase substantially under the ESVF:
|
Property Type
|
FSPL Rate (cents per $1,000 value)
|
ESVF Rate (cents per $1,000 value)
|
Increase
|
|---|---|---|---|
|
Residential PPR
|
8.7
|
17.3
|
~99%
|
|
Commercial
|
66.4
|
133
|
~100%
|
|
Industrial
|
81.1
|
133
|
~64%
|
|
Primary Production (Farms)
|
28.7
|
71.8
|
~150%
|
For example, a homeowner with a property valued at $1 million could face significant increases in annual taxes.
Additional Changes
- From July 1, 2025: The vacant land category will be abolished, with vacant land allocated to its corresponding land use classification
- From July 1, 2026: A new category will be created for residential principal place of residence (PPR), and non-PPR residential properties will incur the non-residential fixed charge
Rebates and Concessions
- Eligible CFA and VICSES volunteers and life members will be entitled to a rebate on their principal place of residence or farm
- To qualify, volunteers must have served for at least 12 months, passed probation, and not be suspended
- The existing $50 concession for pensioners and veterans will continue
- Single farm enterprises will continue to receive concessions
- For farmers who volunteer, property values are capped at $5 million for rebate eligibility, with a maximum rebate of $3,865
Government Rationale
The Victorian Government cites several reasons for the expanded levy:
- Increased frequency of emergency incidents due to climate change and population growth
- Rising demand for emergency services (VICSES callouts increased from 20,000 to 35,000 annually)
- Need to fund a broader range of emergency services
- Bringing Victoria’s funding arrangements in line with other states
- Addressing the state’s mounting debt (currently over $167 billion, projected to reach $194 billion by 2028)
Revenue Projections
- The Victorian government collected $600 million in FSPL revenue last year
- The ESVF is projected to collect $1.6 billion in the 2025-26 financial year
- $26 million in rebates are budgeted for the 2026 financial year
Public Response and Controversy
The ESVF has sparked significant controversy and opposition:
- Protests: Thousands of CFA volunteers and farmers protested at Parliament on budget day (May 20, 2025)
- Volunteer Concerns: Many CFA volunteers are frustrated by the tax increase, particularly as they provide volunteer services
- Farmer Impact: Agricultural landowners face some of the highest increases (~150%), with many claiming they cannot afford the new rates
- Political Opposition: The Victorian Opposition has promised to scrap the ESVF if elected, returning to the FSPL model
- Consultation Issues: Some emergency services personnel report they were not adequately consulted about resource allocation decisions
- Local Government Concerns: Councils will be responsible for implementing the tax but have expressed concerns about the process
Sources
- Broker News Australia, “Victoria’s property tax set to soar,” May 22, 2025
- Department of Treasury and Finance Victoria, “Emergency Services and Volunteers Fund,” 2025
- ABC News, “Firefighters, farmers stage Victorian budget day protest over emergency services levy,” May 20, 2025
- State Revenue Office Victoria, “Emergency Services and Volunteers Fund,” 2025
- Various local council websites and announcements
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The Emergency Services and Volunteer Fund (ESVF) is effectively an additional tax burden for Victorian residents, investors, businesses, and farmers. While it technically replaces the existing Fire Services Property Levy (FSPL), the rates are significantly higher:
- Residential property owners will pay approximately 99% more
- Commercial property owners will pay approximately 100% more
- Industrial property owners will pay approximately 64% more
- Farmers (primary production land) will pay approximately 150% more
The government is projecting to collect $1.6 billion in the 2025-26 financial year, compared to $600 million collected under the previous FSPL last year – representing a $1 billion increase in tax revenue.
So while it’s a replacement tax rather than an entirely new tax category, it represents a substantial increase in the tax burden for all Victorian property owners.
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For an average household living in their own home valued at $1.5 million, the ESVF will have a significant financial impact:
Under the previous Fire Services Property Levy (FSPL):
- Variable rate: 8.7 cents per $1,000 of property value
- Calculation: $1,500,000 ÷ 1,000 × 8.7 cents = $130.50
- Plus fixed charge for residential properties (approximately $132 in 2024-25)
- Total FSPL: approximately $262.50
Under the new Emergency Services and Volunteer Fund (ESVF):
- Variable rate: 17.3 cents per $1,000 of property value
- Calculation: $1,500,000 ÷ 1,000 × 17.3 cents = $259.50
- Plus fixed charge (likely to be similar or slightly higher than the current rate)
- Total ESVF: approximately $391.50 or more
This represents an increase of at least $129 per year (approximately 49% increase) for a household with a $1.5 million principal place of residence.
Note that this is a conservative estimate based on the information available. The actual impact could be higher depending on how the fixed charge component is adjusted and how property values are assessed by the Victorian government.