From July 1, 2025, a new Emergency Services and Volunteers Fund (ESVF) levy will be introduced across Victoria, replacing the former Fire Services Property Levy (FSPL). While the new levy broadens funding for emergency services beyond fire response, it has generated widespread concern—particularly among farmers and emergency services volunteers—due to significant increases in charges for property owners.

The Fire Services Levy was introduced in 2013 following major bushfires. It replaced the fire services levy on home insurance and seemed equitable because people who did not insure their homes had not been contributing to fire services. This FSPL levy increased the funding that the State had for these services and has been gradually increased since 2013.

The new levy will fund not only the CFA and Fire Rescue Victoria, but also a wider range of emergency response services including VICSES, Triple Zero Victoria, Forest Fire Management, and Emergency Recovery Victoria.

According to the State Government, the new ESVF levy will fund:

  • 90% of Fire Rescue Victoria’s budget;
  • 95% of the CFA and SES budgets;
  • Up to 95% of Triple Zero, State Control Centre, Emergency Recovery Victoria, Emergency Management Victoria, Emergency Alert Program, Emergency Management Operational Communication Program, Forest Fire Management Victoria.

The budgets of these organisations, other than FRV and CFA, were previously funded to a large extent as part of the state budget but the government is clawing back funding through this new tax to help repair the ever-growing state government deficit.

Even though the ESVF levy is a state tax, the government is forcing local councils to collect the levy through municipal rates notices. The amount payable for the ESVF will be clearly identified on the notice. Councils cannot refuse to bill residents for the State Levy and  they do not get any portion of it to help cover their collection costs. Councils have no control over its amount or  its application.

The ESVF levy continues the same basic structure as its predecessor. It includes:

  • A fixed charge, based on the classification of the property (residential, commercial, industrial, or farm).
  • A variable charge, calculated as a rate in cents per $1,000 of the property’s Capital Improved Value (CIV).

Although the formula remains the same, the rates and fixed charges have increased significantly, especially for farm properties and non-principal place of residence (non-PPR) properties.

Here’s how the new levy compares to the outgoing FSPL for the 2025–26 financial year:

Residential Properties:

  • 2024–25 (FSPL):
    • Fixed charge: $132
    • Variable rate: 8.7 cents per $1,000 CIV
  • 2025–26 (ESVF):
    • Fixed charge: $136
    • Variable rate: 17.3 cents per $1,000 CIV

For a residential property with a CIV of $1 million, the levy increases from $219 to $309, an increase of $90 or over 40%.

Farm Properties:

  • 2024–25 (FSPL):
    • Fixed charge: $267
    • Variable rate: 28.7 cents per $1,000 CIV
  • 2025–26 (ESVF):
    • Fixed charge: $275
    • Variable rate: 71.8 cents per $1,000 CIV

This would normally result in an increase from $554 to $993 on a $1 million farm property—an increase of $439, or nearly 80%. However, due to community pressure, the State Government has frozen the ESVF levy for farm properties at the 2024–25 FSPL rate for one year, meaning the higher charge won’t apply until 2026–27.

Even so, farmers remain concerned about the long-term financial burden the levy will impose.

The charges will increase in future years. The fixed charges will increase in line with the Consumer Price Index (about 2.5%) but the variable rate will increase in line with property values which are increasing at a much higher rate than inflation. Property owners will bear an increasing proportion of the cost of emergency services.

The introduction of the ESVF has triggered strong reactions from regional communities, particularly those already grappling with rising costs, interest rates, and natural disasters. The impact in Hepburn Shire will be even greater given the Essential Services Commission decision to allow a 10% increase in rates income for the Shire.

Farmers and volunteers staged a major protest on the steps of Parliament in May, many holding signs demanding the tax be “scrapped” or reworked. They argued that the levy punishes the very people it is meant to support—volunteer firefighters and emergency responders who give their time to keep the community safe.

Local governments have also voiced concern, noting that councils are now in the awkward position of collecting a state tax while fielding complaints from residents. Some councils have publicly emphasised that the ESVF is not a council-imposed charge, and that they do not receive any of the revenue collected.

To offset some of the impact, the Victorian Government has announced rebates for eligible emergency services volunteers:

  • Residential volunteers (CFA, VICSES, etc.) can receive a 100% rebate on the ESVF for their principal place of residence.
  • Primary producers who are emergency services volunteers may be eligible for rebates of up to $1,710 on farm properties.

In addition, existing pensioner and veteran concessions will continue. The $50 rebate for eligible residential properties will still apply, and single-farm-enterprise exemptions remain in place for the fixed charge component.

However, many residents are still concerned that these measures do not go far enough to address the steep increases in charges, particularly once the temporary cap on farm levies expires in 2026.

The rationale behind the ESVF is to secure sustainable, long-term funding for a growing list of emergency services that are increasingly under pressure from climate-related disasters and population growth.

But for many in regional Victoria, the concern is less about the principle than the painful financial hit—especially for rural landholders with multiple properties, and for CFA and VICSES volunteers who feel both undervalued and unfairly taxed.

With the first round of ESVF charges appearing on council rates notices later this year, the State Government can expect continued scrutiny over how fairly the levy is applied—and how effectively the revenue is used to support both professional and volunteer emergency services.

To learn more about the Emergency Services and Volunteers Fund, visit the State Revenue Office website.