New levy gets backing
By Kath Gannaway
14th September 2010 02:00:23 AM
THE State Government’s announcement that it will replace the Fire Services Levy with a property-based levy has been met with widespread approval.
Coldstream campaigner for a more equitable FSL, Mario Galteri, said while the government’s announcement, in line with a Bushfires Royal Commission recommendation, didn’t provide a lot of detail, it was headed in the right direction. A new model would collect funds currently collected through insurance premiums that partly fund the CFA and MFB.
Mr Galteri has been campaigning for four years for the change and in 2009 supported McEwen MP Fran Bailey’s call for the levy to be tied to local council rates.
He said there was a huge disparity between the amount levied on residential properties and businesses, which include farmers.
“When the total taxes are more than the insurance premium, you start to wonder what’s going on, and why business is having to pay so much extra,” he said.
The other issue that the government will have to deal with is the extra income which flows to their coffers through the GST and stamp duty on the levy.
Mr Galteri said while he would have preferred the fire services were funded in the same way as other emergency services such as ambulance and police, he welcomed the move to “user pays”.
“The ultimate aim is to share the burden of everybody affected by fire, and that is everybody,” Mr Galteri said.
The Victorian Farmers Federation (VFF) hailed the decision as a victory and vindication of what VFF president Andrew Broad said was a decade-long campaign against an “unfair tax”.
The Municipal Association of Victoria (MAV) has added their support to the change, but say it must be fair and equitable and not collected through council rates.
Evelyn MP Christine Fyffe was another who welcomed the move, saying she had long argued the FSL was a burden that should be shared across all property owners.
“It’s a pity the government had to be dragged kicking and screaming to this decision,” she said.
State Government treasurer John Lenders said the government would consult to determine the best model with options being released in a White Paper in February. He said they would also ensure insurers passed on the full benefit from having the FSL removed from premiums and that there would be concessions for low-income earners.
Comment: This is just the first step, a good step but we need to keep a eye on the way the State will eventually collect funds/tax for the Fire Services.
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