Monday, May 16, 2011

Property-based tax replaces Vic fire levy

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Comment:  Well done Mr Ryan.


All Victorian property owners will contribute to funding the state's fire services under a new tax from next year.
But exactly how much each owner will pay is yet to be determined by the government, although concessions are likely to be available to people on low incomes.
Victorian Deputy Premier Peter Ryan announced on Saturday a new property-based tax would replace the current Fire Services Levy from July 1, 2012.
Currently, the fire service levy is charged on insurance holders' premiums, funding the Country Fire Authority (CFA) and Metropolitan Fire Brigade (MFB) to the tune of almost $600 million a year.
Mr Ryan said the new levy would be phased in over one year, allowing a transition from the insurance-based tax.
The new tax will be fully implemented by June 30, 2013, he said.
Mr Ryan said the current levy was an unfair tax, particularly for people living in regional and rural Victoria.
"The unfairness of it is highlighted by the fact that it's only those who choose to insure who actually pay the fire services levy," he told reporters at the Victorian Nationals state conference.
"Those who do not insure at the moment ... still expect that the fire truck is going to turn up."
The government will next month release proposals for key aspects of the new levy including its structure, concession eligibility and methods to phase out the insurance-based model.
The Victorian Bushfires Royal Commission recommended a new fire services tax be paid by all Victorian home owners to fund the state's firefighting effort.
Treasurer Kim Wells told a Public Accounts and Estimates Committee hearing on May 6 that the new levy would not impact on the budget bottom line.
Mr Ryan also announced that $40 million toward Victorian flood relief outlined in the recent state budget would be split between local government and the small business sector.
About $30 million would be provided to local council to upgrade parks, walkways and sporting grounds while $10 million would assist small businesses to establish or expand in flood-affected regions.

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