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The new levy will consist of a fixed component of $100 a year for residential properties and $200 for commercial, industrial and farming properties.
On top of that there will be a variable component calculated on the value of a property to be set at budget time.
Pensioners and veterans will get a $50 concession per household from the levy, costing $20 million a year
The government will also get rid of GST and stamp duty charged on the fire levy. Overall, the changes will cost the state budget $105 million a year. They enact recommendations by the royal commission into the Black Saturday bushfires.
Some sections of the community have complained the current insurance-based levy is unfair as underinsured households and businesses or those not insured at all get the benefit of firefighting services without fully contributing.
Farmers, too, have complained about the soaring insurance levy in rural areas, which has risen to as much as 95 per cent of premiums in recent years.
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Read more: http://www.theage.com.au/victoria/shakeup-of-fire-levy-announced-20120828-24xrd.html#ixzz24oAor02m
Comment: Finally!
3 comments:
Business Tenants win too with these Fire Levy changes as most leases provide for tenants to pay for insurance outgoings. My only concern is the unknown percentage on property values which is the big unknown, Does anyone know how this part will work Mario?
Gill
I assume that they will need $X to fund the CFA. If the total property value, in the CFA areas, is $Y, then:
the % should be easily calculated.
Those who have had insurance in the past should all be better off.
The big variable is $X.
Eg: Country Cafe quoted a punishing $7000 on $600K on Building Replacement, Contents & Public Liability $10 Mil, Current Fire Levy, S/D & GST is $3,500. Reduced premium to $4000 by increasing excessess and leaving out other covers, BUT $2000 still Fire Levy etc. New system should save that buisiness $1800 or less. This is an example of how property owners and their tenants have been carrying/subsidising the uninsured for years and how unfair it has been to anyone wanting to start any form of business dealing with the public. Hopefully insuers dont try to fill that gap with increased premiums. This is a well overdue and welcomed reform.
The next reform I'd like to see is for the State government to ignore the selfish greenies outside and inside their party and allow and mandate the break up of the 40 Ha land parcels to 1 Ha at least, so that the young would-be eco farmers who cant afford or want 40 Ha farms can turn the expensive green grasses into productive vegie plots using intensive permaculture and other ecologically sustainable methods to feed the hungry and growing population in Melbourne. The Yarra Ranges illfounded attempts and unofficial policy to force down prices of GWZ land during 2009 was counter productive which would have compromised the mortgage agreements and as a consequence all the businesses would have faced an extra banking squeeze, proving the State Government should not leave it to the councils & their planners to decide or have the option to allow subdivisions or not. With so many farmers getting to retirement age and with few people interested or financially able to buy large farming operations other than the Asian nations, it would seem a no brainer that allowing a younger generation to enter the eco farming sector while they are younger and healthier would be a big help to securing our local fresh food supplies which together with tourism in all its forms would turn the Yarra Valley into a more vibrant cosmopolitan area which would not do by limiting and blocking new entrants is having.
I urge that both the extreme left greenies and the Liberal Greenies who still seem to have a say to have a rethink of who they are really helping by mantaining this idea that big farm plots of 40 Ha is good to keep the land green with grass and to exclude and block all the younger eager aspiring eco farmers who would be planting fruit trees and vegies to feed those of us who would prefer Aussie food. Keeping the 40 Ha plus rule will only encourage the land to be purchased by the Asians to do whatever they decide, but locking out small Aussie Eco Farmers from getting started forever, yes FOREVER, as I dont think the Asians have sold any property since they started buying. I would like to hear from any more interested in my views to contact me to promote this concept. I have a list of eager young farmers waiting looking for 1 Ha sites if anyone knows of any please advise.
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