Transparency, not hidden taxes

MANY Geelong residents received an unwelcome surprise as they opened their rates notices over the past fortnight.

Included in their notice was state government’s controversial new Emergency Services and Volunteers Fund (ESVF) levy, which passed Parliament in May.

Business owners have been bracing for a sharp increase in costs since the bill passed, with the average commercial ratepayer set to fork out an extra $837 annually on their rates.

That’s an almost 80 per cent increase on what they paid under the previous Fire Services Property Levy (FSPL), which the ESFV levy replaced.

Industrial ratepayers will pay an extra $542 on average, an almost 50 per cent jump on the previous levy.

Small businesses are the backbone of our economy, providing tens of thousands of jobs and high-quality goods and services for our community.

This new tax undermines their hard work, increasing operational costs and stifling economic growth. And, while commercial and industrial ratepayers bear the brunt of the ESVF, no one is immune.

Residential ratepayers were slugged an extra $80 on average on their rates notice under the new levy, which is the last thing they need during a cost-of-living crisis.

Some groups – such as farmers – have been temporarily shielded from the full impact of the levy this year, but most ratepayers will feel the pinch immediately.

As you may have guessed, I’m particularly passionate about this issue. This isn’t just because I’m ratepayer who has worked in business for most of my life.

In 2013, I was part of the former Baillieu Liberal Government that introduced the Fire Services Property Levy (FSPL).

The original levy was all about fairness, transparency and ensuring adequate funding for our vital fire services.

Prior to that reform, only those who insured their properties contributed to fire services.

The FSPL ensured all property owners paid their fair share – while removing additional taxes like stamp duty and GST that had been tacked onto insurance premiums.

Every dollar raised through the FSPL went directly toward Victoria’s fire services, in line with their approved budgets.

But what started as a positive reform has morphed into a revenue raising exercise following the introduction of ESVF levy.

And Victorian Premier Jacinta Allan has mandated that councils act as state government’s collection agencies for this new charge.

The City of Greater Geelong is not keeping a cent of the ESVF levy, and your rates notice will clearly identify it as a state government charge.

Victorians have always been willing to contribute to the fire services that protect our communities.

But this latest levy from the state government is a step too far – a thinly veiled land tax under the guise of supporting volunteers and first responders.

The reality is that the state government has run out of money and has created new taxes in the form of the ESFV levy to fund shortfalls in other emergency services.

Rather than managing its budget responsibly, it is shifting the burden of funding these services to ratepayers.

Our residents deserve better. We need transparency, not hidden taxes. And we need policies that support – not hinder – local families and businesses.

Cr Andrew Katos

Deakin Ward, City of Greater Geelong