Christmas has come early for Mansfield Shire’s primary producers as the Victorian Government temporarily backs down on its controversial Emergency Services Volunteer Fund (ESVF), freezing the levy for a further two years and doubling the property value threshold for volunteer exemptions.

The decision, announced in the state government's budget update last week, comes after months of fierce opposition from regional communities and a massive advocacy campaign by groups including the Victorian Farmers Federation (VFF) and Mansfield Shire Council.

The new levy which came into effect in July replaced the Fire Services Property Levy (FSPL) with local businesses and ratepayers already feeling the financial sting on their rates notice with council mandated to collect the “tax” for the state government.

However in the roll-out, farmers were given a temporary reprieve capping the levy at the 2024-25 rate as part of the state government’s drought support package.

Projected to significantly increase costs for primary producers—potentially by tens of thousands of dollars for some Mansfield Shire farmers – this reprieve has now been extended a further two years.

VFF President Brett Hosking welcomed the two-year freeze on the ESVF levy variable rate for Primary Production Land, and the increase of the volunteer exemption cap from $5 million to $10 million on capital improved value for their farms.

“Farmers will be breathing a huge sigh of relief,” Mr Hosking said.

“This tax was set to rip hundreds of millions out of the pockets of cash-strapped farmers in the middle of a record-breaking drought.”

He stressed that the government’s reversal acknowledges the significant pressure faced by the sector.

“Freezing the levy and increasing the exemption threshold acknowledges the massive pressure farmers have been under, particularly following years of drought and escalating operating costs,” he said.

Mr Hosking extended his thanks to the government officials involved.

“I would like to thank Premier Jacinta Allan, Treasurer Jaclyn Symes and Minister for Agriculture Ros Spence for listening to farmers across Victoria,” he said.

“Victorian farmers told us the Emergency Services Volunteer Levy was their number one issue and we’ve been moving heaven and earth to get to this decision.”

Despite the relief, the VFF President emphasised that this is only a temporary fix and the conversation about long-term funding for emergency services must continue.

“A pause is great, but we need a permanent and fair and equitable funding model that reflects modern realities and doesn’t continue to load disproportionate costs onto property owners,” Mr Hosking said.

The VFF will now shift its focus to working with the government over the next two years to secure a serious and transparent discussion on long-term funding reform.

“It’s a step in the right direction, now we need real reform so we aren’t staring down the barrel of the same tax in two years’ time,” Mr. Hosking said.

“Before next year’s election, we need a firm commitment on what the process will look like to work in partnership with farmers to deliver a long-term funding solution – one that supports farmers, volunteers, strengthens emergency service capability, and treats all Victorians fairly.”

In tabling the budget update, Victorian Treasurer Jaclyn Symes denied the levy’s roll-out was impacted by community and council opposition, stating the delay to key parts of the unpopular tax was to give the State Revenue Office time to “get their processes right”.

Regarding the primary production freeze, Ms Symes committed to no change for the next two financial years in recognition of ongoing dry conditions, allowing primary producers time to recover from recent challenges.

Whilst good news for farmers providing crucial financial relief, debate remains about the fairness for other ratepayers with local businesses and retail doing it hard.

Mansfield Shire Council has been a strong, early advocate against the tax, unanimously voting to oppose the levy and joining a collective partnership with Regional Cities Victoria (RCV), Rural Councils Victoria (RCV) and the Municipal Association of Victoria (MAV).

“Though the treasurer says community and councils have had no impact, I'm delighted the state government has finally listened to the millions of Victorians who have opposed this unfair tax from the beginning,” said Mansfield Shire mayor Cr Steve Rabie.

“It's wrong for council to be asked to collect a tax they do not believe in, every council across the state is in agreement.

“We do not want this tax.

“Forcing councils to act as tax collectors for the state in unconscionable.

“Forcing Mansfield Shire Council to collect tax for Mt Buller when we have no influence or authority over the area is ridiculous.

“It's a debacle and it it has been a debacle from the beginning.

“I understand a not-for-profit retailer in our town has been hit by a 100 per cent increase in the figure; how is that not a debacle?

“A reprieve just kicks the can down the road, we need them to scrap the unfair tax altogether.

“This sounds to me like they're putting it on the backburner until after the election and after the election it will be foot on the gas and off we go.

“Our council is united to fight this unfair and unreasonable debacle of a tax.”

Cindy McLeish MP, Member for Eildon echoed the sentiment, calling the move a "politically motivated stunt".

“The government is under pressure in numerous country seats and have chosen to delay the tax rather than address fundamental flaws and inequity in the levy,” she said.

“The Liberals and Nationals have been clear from the outset they will axe this tax and have committed to funding both the CFA and SES appropriately.”