City objects to fire charges

By Nicole Williams
A NEW fire tax model for all ratepayers has council concerned it will confuse residents.
The State Government announced a new model to fund Victoria’s fire services which will take it from an insurance-based levy to a property-based levy from 1 July 2013.
The levy, which funds the CFA and MFB, will be collected by local councils and ‘overseen’ by the State Revenue Office.
Greater Dandenong Mayor Cr Youhorn Chea said council was disappointed that local councils would be used to collect the levy.
“Council is very concerned that residents will associate this charge with a Council cost,” he said.
“Council has expressed on a number of occasions that State taxes should be collected by the State Revenue Office which is established for this purpose”
Treasurer Kim Wells said the State Government would continue to consult with the community and local government in the lead up to the change.
“An expert panel will be formed to focus on key implementation issues,” he said.
“The panel will consult with businesses, local government and other community stakeholders ahead of the transition and provide advice to government.”
Premier Ted Baillieu and Deputy Premier Peter Ryan said households and businesses would be better off under the new scheme.
“These changes will ensure everyone contributes a fair share to the fire services, not just those who adequately insure their property,” Mr Baillieu said.
Mr Ryan said the previous model was flawed.
“Under the current system only those who insure their properties make a contribution to funding the state’s fire services,” he said.
“The insurance-based model increases the cost of insurance and acts as a disincentive to insure, leaving people vulnerable in the event of natural disasters like Black Saturday.”
The levy will include a fixed component, of $100 for homes and $200 for businesses and farms, and a variable component calculated on the value of the property.
The levy collected within the CFA area will be used to fund the Country Fire Authority and any levies collected within the MFB area will fund the Metropolitan Fire Brigade.
The State Government estimates the average household will pay $140 under the new model compared with $260 in 2011-12.