Both Campaspe and Gannawarra shire councils acknowledged the Victorian Government’s announcement it would freeze the levy rate for two years.
The ESVF variable rate will remain at 28.7 cents per $1000 of capital improved value for at least the next two financial years for primary production properties.
An increase was also announced to the volunteer rebate cap for CFA enlistees, rising from $5 million to $10 million, and changes that would affect investment properties were deferred.
Although thankful for the temporary relief, Campaspe Shire Council maintained that the ESVF still needed to be scrapped or fundamentally revised.
“We support properly funded emergency services, and we value our volunteers,” Mayor Daniel Mackrell said.
“However, shifting the burden through a state tax on local rates, with councils acting as collection agents, remains the wrong approach.”
Local farmer and Campaspe Shire Deputy Mayor Tony Marwood said the relief was welcome, but a “piecemeal pause” was not a solution.
“We continue to call for funding from consolidated revenue and genuine consultation that delivers a fair model for everyone,” he said.
Gannawarra Shire Mayor Garner Smith noted the proposed 150 per cent increase to be applied to farmers under the full ESVF amount was a poor economic decision for the state.
With government reports stating 70 per cent of Victoria’s exports originate from food and fibre grown in the regions, the full levy would harm one of the state’s most productive sectors.
“Gannawarra’s farmers ... work hard to provide food and fibre efficiently, keeping the cost of living down,” Cr Smith said.
“While the reprieve for farmers is appreciated, plans for the increase should be reconsidered.”
Both councils have objected to collecting the levy via rates notices on behalf of the government, and have called on the State Revenue Office to collect it directly.
Over $8 million is expected to be raised from Campaspe residents under the fully implemented ESVF each year, while $3.2 million will come from Gannawarra residents.
Current backlash to the levy cites farmers stricken by drought, mental health impacts, a lack of guarantee the funds will be used locally and financial concerns.
Cr Smith said it was potentially the “biggest single threat” to Gannawarra’s finances, and if residents chose not to pay the ESVF with their rates, the council would be required to front the cost.
“The impact to cash reserves could be a tipping point for some councils,” he said.
Cr Mackrell said the council would continue to advocate against the levy, and encouraged Campaspe residents to do the same.
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