Fran Bailey on Fire Service Levy

Fire levy change needed to end selective taxes.

Funding for Victoria’s fire services should be tied to local council rates, said member for Mc-Ewen Fran Bailey.


Fran has called on the Brumby Government to immediately drop the existing and selective fire services levy on insurance premiums.


"Not everyone insures their home or business. The financial responsibility must be shared by all Victorians," Fran said.


"But the Brumby Government is making it hard for Victorians to afford insurance on their properties – the levy has been increased and so has the Government triple-dipping collection of GST and stamp duty on insurance premiums.


"It’s time for an overhaul of a funding model rooted in the 19th century and one that now discriminates against country communities."


Fran is advocating for a new model that ties funding of Victoria’s emergency services to local council rates.


"An overhaul of the fire services levy and attaching it municipal rates will see all property owners contribute to the protection of our people and our communities," Fran said.


"And council rates come without GST or stamp duty being whacked at the bottom of the bill by the Brumby Government."


Fran said the property fire levy already applied in Queensland, Western Australia and South Australia.


"We need these radical change to the Victorian funding model of our fire brigades otherwise more people will struggle to pay hefty increases in their insurance premiums."


Insurance industry data shows that the Victorian fire services levy now accounts for 68 per cent of the premium for businesses in country Victoria, up from 63 per cent. In metropolitan areas the levy on commercial premiums is now 51 per cent, up from 48 per cent.


For householders the figure is now 26 per cent (up from 24 per cent) in country Victoria, and 21 per cent (up from 20 per cent) in urban centres.


Fran has written to Premier John Brumby about the distress insurance premium hikes are causing local people.


"The fire services levy is a discriminatory tax on country people and country businesses and is no way to fund a modern volunteer fire service covering all of Victoria," Fran said.